Trump to Appeal Ballroom Ruling, OpenAI Halts Work on AI Model, More

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Bloomberg News Now 7 min 8 speakers 7 chapters transcribed 1 month ago
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Why is President Trump pushing to remove Fed Governor Lisa Cook over mortgage‑fraud claims?

David Weston 0:00
Hi, I'm David Weston. Join me every week for the Wall Street Week podcast to hear stories of capitalism from around the world. From geopolitical tensions and central bank decisions to artificial intelligence, energy and infrastructure. We sit down with the CEOs, economists, policymakers and thought leaders whose decisions are shaping markets everywhere we find them. Subscribe to the Wall Street Week podcast on Apple, Spotify or anywhere you listen.
Dan Schwartzman 0:30
News when you want it with Bloomberg News Now. I'm Dan Schwartzman. President Trump is once again considering removing Federal Reserve Governor Lisa Cook over unproven allegations of mortgage fraud, according to a letter. The letter gives Cook until August 26 to respond to the allegations, which her lawyer Abe Lowell says are, quote, baseless and have not been tested in a court of law. The Supreme Court in a 5-4 decision back in June allowed Cook to remain in her job while she fought Trump's bid to oust her over the mortgage fraud accusations, faulting the president for not giving her notice and a chance to be heard before trying to remove her. President Trump said he'd like rates to come down before the November midterms, but in an interview with Punchbowl News, he acknowledged Fed Chair Kevin Walsh can't do it on his own without the Fed board.
Dan Schwartzman 1:13
This week, Bloomberg News reported the president has spoken to Walsh several times, since he took over as Fed chair.

What safety concerns led OpenAI to pause work on its new Astra model?

Dan Schwartzman 1:18
White House economic advisor Kevin Hassett says that shouldn't come as a surprise.
Kevin Hassett 1:22
Kevin Warshad, the president, have a very close long-term relationship from New York City, from Florida, and they talk about the economy all the time, and I talk to Kevin as well as to Scott Besson. And so that's like not really news.
Dan Schwartzman 1:34
National Economic Council Director Kevin Hassett says he's sure the president doesn't give worse interest rate advice. Hassett was a guest on Bloomberg Radio and Television. OpenAI is halting some internal work around its upcoming Astra model to build in stricter safeguards after the system was found to be significantly more adept at cybersecurity tasks. The company said it, quote, cannot rule out that Astra could become capable of identifying and developing zero-day exploits without human intervention, which would reach a company's, quote, critical cybersecurity threshold. OpenAI said it's now taking steps to improve security controls for developing and testing newer models. The ChatGPT creator says it will work with government agencies and AI safety organizations to test Astra's capabilities.
Dan Schwartzman 2:16
Wage growth continues to lag behind inflation, and the Federal Reserve Board members are divided on when to step in as inflation persists. Jared Bernstein, a former White House economic advisor, commented on Bloomberg's balance of power.
Unknown 2:28
3.2 percent, that's the year-over-year wage growth. That's the lowest we've seen since the pandemic.

How are low wage growth and supply‑side pressures influencing the Fed’s inflation battle?

Unknown 2:35
And so the folks at the Fed recognize that whatever inflation we're seeing isn't coming from the labor market. That means that it's largely coming from the supply side of the equation, the tariffs, the war. along with some pressure from AI picks and shovels.
Dan Schwartzman 2:49
That's former White House economic advisor Jared Bernstein on Bloomberg's balance of power. The U.S. Army will buy at least $400 million worth of counter-drone lasers from Arlington, Virginia-based AeroVironment. That's according to a person familiar with the matter. Militaries around the world are seeking ways to knock down the unmanned systems proliferating across modern battlefields. The AI-assisted LOCUS system tracks, identifies, and helps human operators destroy small to medium-sized drones with a high-energy laser. The deal would represent the Pentagon's first production contract for a directed energy counter drone system beyond the prototype phase. SpaceX shares jumped for a second straight day, ahead nearly 16%, bringing them close to breaking back above the company's $135 IPO price.
Dan Schwartzman 3:32
The lockup expiration more than doubled the total number of shares available to trade to $1.55 billion since SpaceX went public.

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