Breaking AI & Tech News Analyzed

Kevin Warsh, the former Federal Reserve governor chosen by Donald Trump to lead the central bank, has submitted financial disclosures indicating he holds assets worth well over $100m. This disclosure is a required step for his nomination to advance through the Senate.The document, filed with the US Office of Government Ethics, reveals that Warsh has significant investments, including two worth more than $50m each in the Juggernaut Fund LP and $10.2m in consulting fees from Stanley Druckenmiller's investment office. He has also pledged to divest certain assets if confirmed.Warsh's holdings include around two dozen investments in THSDFS LLC, some valued as high as $5m, as well as assets in artificial intelligence and crypto sectors. His spouse, Jane Lauder, whose family has interests in the Estée Lauder cosmetics company, also had holdings disclosed.The filing is a key step in Warsh's expected confirmation to succeed Jerome Powell as Fed chair, though the timing remains uncertain. A Senate banking committee hearing has yet to be scheduled, and Republican lawmakers have vowed to block his confirmation until a Department of Justice investigation into Powell is concluded.

The US Treasury secretary, Scott Bessent, recently convened a meeting with major American bank chiefs in Washington to address growing concerns over the cyber risks associated with Anthropic's latest AI model, Claude Mythos. This model has reportedly exposed thousands of vulnerabilities in software and popular applications.The meeting, which included Jerome Powell, the Federal Reserve chair, and CEOs from prominent banks such as Goldman Sachs, Bank of America, Citigroup, Morgan Stanley, and Wells Fargo, was called to discuss the potential risks posed by this advanced AI technology. Jamie Dimon of JP Morgan was invited but could not attend.Anthropic has restricted the release of Claude Mythos to a limited number of businesses, including Amazon, Apple, and Microsoft, due to concerns that hackers could exploit the model's capabilities to compromise data security. The company has noted that the model uncovered vulnerabilities up to 27 years old that had not been previously identified.This development comes as the US government has designated Anthropic as a supply chain risk, a designation the company is contesting in court. The meeting highlights the increasing concern among regulators and financial leaders about the potential for AI to both enhance and threaten cybersecurity.

A United States federal judge has rejected a motion from the Department of Justice to reconsider his earlier ruling dismissing subpoenas against Jerome Powell, the chairman of the Federal Reserve.In a six-page opinion published on Friday, Judge James Boasberg reaffirmed his decision to nullify the subpoenas, stating that they were issued for an 'improper purpose': to pressure Powell into compliance with President Donald Trump's demands.The subpoenas were part of an investigation into Powell's handling of renovations to the Federal Reserve's historic buildings in Washington, DC, which have gone over budget. The Trump administration has accused Powell of 'malfeasance' and called for his premature resignation.Boasberg criticized the Trump administration's efforts, saying they presented 'no evidence whatsoever of fraud' and that the subpoenas were an attempt to undermine the Federal Reserve's independence.The ruling is likely to set the stage for the Trump administration to appeal, with US Attorney Jeanine Pirro previously denying any political motivation for the investigation.

The Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTS) shows that job openings dropped by 358,000 to 6.882 million in February, the smallest tally since 2020 and well below the forecast of 6.918 million. February’s hiring figures also slipped, with 4.8 million workers hired—the lowest monthly total since March 2020. The quit rate fell to 1.9%, equating to roughly three million workers leaving their jobs, indicating growing reluctance to switch employers. Consumer confidence is eroding in tandem. A University of Michigan survey released in March recorded a 6% year‑over‑year decline and a 5.8% drop from the previous month, pushing sentiment to its weakest point since December. Economist Heather Boushey of the University of Pennsylvania linked the sentiment dip to President Donald Trump’s second‑term policies, noting that “people are getting super frustrated with Trump’s economy.” Senior fellow Michele Evermore of the National Academy of Social Insurance warned that the modest decline in quits “indicates that workers continue to have a pessimistic view of their chances on the open market,” and urged state governments to bolster unemployment systems as a counter‑cyclical buffer. Policy uncertainty is a key driver. Since his re‑election, Trump has pursued aggressive tariffs, some of which were recently blocked by the Supreme Court’s decision that the International Emergency Economic Powers Act cannot be used for that purpose, leaving the tariff regime in flux. Compounding the trade dispute, the U.S. involvement in the February 28 attack on Iran sparked a regional war. Iran’s retaliation—shutting the Strait of Hormuz—has tightened global oil supplies, pushing U.S. gasoline prices to $4.018 per gallon, up more than a dollar from the previous month. Federal Reserve Chair Jerome Powell cautioned that the economy faces a “zero‑employment‑growth equilibrium” with downside risks, while the central bank has so far kept interest rates steady and will announce its next policy decision in late April. Private, non‑farm payroll growth has also slowed, averaging just 18,000 jobs per month over the three months ending February, underscoring the tepid demand for new labor. Despite the labor market gloom, equity markets rallied during midday trading on Tuesday, with the Dow Jones Industrial Average up 1.9%, the Nasdaq climbing 3.4%, and the S&P; 500 gaining 2.3%.

The US Treasury Department has taken a strong stance against the Financial Times (FT), formally requesting a retraction of a report that suggested Treasury Secretary Scott Bessent had discussed increasing oversight of the Federal Reserve in a manner similar to the Bank of England's model. In a detailed email to senior editors at the FT and its parent company, Nikkei Inc., Treasury officials disputed multiple claims in the story, criticizing the headline as misrepresenting the underlying reporting. The FT had reported on March 26 that Bessent had discussed adopting practices similar to the Bank of England, including regular communication between the Fed governor and the US Treasury Secretary over inflation targets. Treasury officials denied that Bessent had endorsed such views or discussed adopting similar practices in Washington. They also took issue with the headline, which stated that Bessent had 'praised' the Bank of England model for tighter oversight, a claim that did not appear in the text of the story. “The Secretary has never made any of the above statements in public or private,” Elliott Hulse, the acting assistant secretary for public affairs, wrote in the email. “At no time has the secretary ‘discussed tightening the US Treasury’s oversight of the Federal Reserve by adopting elements of the Bank of England’s model in a step that would shake up the central bank’s relationship with government.’” The FT responded by stating they were confident in the accuracy of their story, including US Treasury responses in the article. This incident highlights the sensitivity surrounding the Federal Reserve's political independence, especially following Donald Trump's repeated threats to fire Fed Chair Jerome Powell for not reducing borrowing costs as requested. Investors prioritize the Fed's independence in making policy decisions, as political pressure could lead to rapid inflation and subsequent sharp rate increases. The Treasury's actions mark an effort to discredit the FT report, with Bessent himself denying the claims on social media.