President Donald Trump is pressing the Federal Reserve to lower interest rates while defending the current regulatory approach to artificial intelligence. In a recent Truth Social post, he claimed the United States already has “strong and smart” guardrails for AI, adding that China would benefit if U.S. AI development were hindered.
Market backdrop
Investors are pricing in a rate hike by Fed Chair Kevin Warsh, a Trump appointee, despite the president’s call for the lowest rates globally. More than 90% of market participants expect the first increase at a two‑day meeting beginning Tuesday.
Inflation worries persist as attacks on Saudi Arabian energy infrastructure raise concerns about oil supply. Brent crude rose 1.19% to $106.94 a barrel, while U.S. crude climbed 1.32% to $102.73.
U.S. 10‑year Treasury yields reached the psychological 5% level for the first time since October 2023, prompting a parallel rise in Japan’s 10‑year government bond yield to 3% ahead of the Bank of Japan’s policy meeting, where a quarter‑point hike to 1.25% is anticipated.
AI regulation debate
Industry leaders have warned that AI could pose risks to people and have called for stronger regulation. Trump dismissed these concerns, asserting that existing safeguards are sufficient and that the nation’s leadership is more than capable of managing the technology.
He emphasized that the only “guardrails” AI needs are a “strong and smart (High IQ!) President,” a statement that underscores his confidence in the administration’s ability to balance innovation with safety.
Key upcoming data
- Federal Open Market Committee meeting
- British employment figures
- German ZEW economic sentiment and wholesale price index
- French CPI final release
- U.S. ADP weekly employment change
The market will watch these releases for clues on how the Fed’s policy and global economic conditions may evolve in the coming days.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
