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June 7th - According to sources, Sriram Krishnan, a technology investor who spearheaded the Trump administrations pro-industry AI policy, plans to leave the White House at the end of this month to found an outside organization aimed at influencing technology policy. Krishnan is one of the architects of the governments "AI Action Plan," which outlined a blueprint for deregulating new technologies and promoting the construction of data centers nationwide. He also participated in drafting an executive order limiting states ability to regulate AI. However, advanced AI models such as Anthropics Mythos have demonstrated the ability to discover software security vulnerabilities, raising concerns among senior government officials about the risk of cyberattacks and prompting some officials to reassess the relaxed regulatory approach championed by Krishnan and others.According to Saudi media alhadath: Pakistans Interior Minister has arrived in Iran.According to The Information, White House senior policy advisor on artificial intelligence, Krishnan, will be leaving the office.On June 7th, Federal Reserve Governor Michael Barr criticized regulators moves over the past year to ease restrictions on bank lending, stating that related proposals "significantly weakened bank regulation." Barr stated that the vulnerabilities resulting from deregulation may not be immediately apparent, but will accumulate problems over the next few years and could cause serious damage to the economy. Trump-era officials have taken steps to ease capital requirements for Wall Street banks, narrow the scope of regulation, and pave the way for competition between traditional banks and private lending giants. Barr warned that weaker capital rules, liquidity requirements, and regulation could increase the risk of bank failures. He pointed out that banks need room to grow to support economic innovation, but long-term experience shows that without proper safeguards, the pursuit of high-profit innovation can lead to excessive risk. When banks run into trouble, their failures threaten businesses and households, and even jeopardize the overall economy.Federal Reserve Chairman Barr warned that relaxing regulatory rules for Wall Street banks could pose risks.

GBP/USD seeks to regain 1.2300 as higher UK CPI strengthens the case for a rate hike by the Bank of England and the USD retreats

Alina Haynes

Mar 23, 2023 15:00

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During the Asian session, the GBP/USD pair attempts to reclaim the resistance level at 1.2300. Following a vertical correction, the Cable has recovered to near 1.2260 as the market anticipates that the absence of hawkish interest rate guidance from Federal Reserve (Fed) chair Jerome Powell while addressing the economy at the monetary policy meeting indicates that the Fed is close to ending its policy-tightening spell.

 

S&P500 futures have generated some gains in the Asian session following a decline on Wednesday as a result of Fed Powell's confirmation that the fight against intractable U.S. inflation will continue. Chairman of the Federal Reserve Jerome Powell has ruled out rate cuts in 2023, citing the difficulty of controlling inflation. In addition, US Treasury Secretary Janet Yellen's statement that the government "does not plan to insure all uninsured bank deposits" heightened fears of a banking sector collapse.

 

Following a recovery move, the US Dollar Index (DXY) has retreated on expectations that additional credit tightening to protect banking institutions will reduce overall demand, economic activity, and inflation. In the interim, the demand for US government bonds has increased as a result of expectations that US Janet Yellen will end further policy restrictions and reduce support for all bank deposits.

 

On the front of the United Kingdom, the Pound Sterling is likely to maintain its strength as the Bank of England (BoE) is scheduled to raise rates for the eleventh consecutive time. Governor Andrew Bailey of the Bank of England is expected to raise interest rates by 25 basis points (bp) in response to rising food and non-alcoholic beverage prices, as well as rising energy costs, which have contributed to inflation in the United Kingdom.

 

In the midst of global banking turmoil, the Bank of England's (BoE) interest rate decision will be difficult, as policymakers were divided over whether to raise rates further or maintain them at their present level.


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