Fed Chair Powell on China Evergrande, AI, Silicon Valley, and cybersecurity.

TLDR:

– Federal Reserve Chair Jerome Powell expects a rate cut this year, despite a decline in inflation and near-record-high employment.
– Powell discussed the threat of cyberattacks on the American banking system, emphasizing the need for constant investment in cybersecurity defenses.
– The chairman addressed the failure of Silicon Valley Bank and the need for better bank supervision and regulations to prevent similar scenarios.
– Powell commented on the collapse of China Evergrande, emphasizing that the U.S. is not financially intertwined enough with the Chinese economy to feel significant shocks.
– Geopolitical risks, such as wars and conflicts, were identified as the greatest threat to the global economy. Immigration was also discussed as a factor in the labor market recovery.
– Powell mentioned the Federal Reserve’s research into the impact of artificial intelligence on the economy, particularly in terms of productivity, employment, and wealth distribution.