Features like the infinite scroll, video autoplay, push notifications, and the platforms’ personalized recommender systems are being pointed out as part of the core problem. According to the Commission, these features “shift the brain into autopilot mode,” and it says that Meta failed to properly weigh their effect on users’ physical and mental health. However, a Meta spokesperson has stated that the company does not disagree with the regulators’ findings, including the conclusions about its teen accounts. The spokesperson also stated that Meta would keep working with the Commission on child safety.

Meta rejects European Commission’s findings on its platform designs

Meta has previously stated that it has put in more than a decade of work and built over 50 tools to protect younger users. The investigation was started in May 2024 and focused on minors and vulnerable adults. The Commission found that Meta ignored what it knew about how long children stay on the apps late at night and about how formats like Reels and Stories can drive what it calls an “excessive or even compulsive use.” The regulator added that the fixes Meta claims to have put in place did not hold up under review.

It also states that features such as time-management tools, parental controls, and screen-time awareness pages are too weak to offset features engineered for engagement. A senior Commission official told journalists that the teen accounts Meta rolled out in the EU in 2024 did not meet the standard set by the DSA. The official also added that their default settings “can be easily dismissed” and that parents need to be experts to locate the controls at all.

Henna Virkkunen, the Commission’s Executive Vice President for Tech Sovereignty, Security, and Democracy, said, “The Digital Services Act provides a clear framework to hold platforms accountable for the addictive design and effects of their services,” adding, “We are fully committed to enforcing our legislation in Europe.” The preliminary findings don’t mean the EU has made a decision or issued any penalty yet.

Meta, on the other hand, can respond in writing, examine the Commission’s files, and try to refute the case before any penalty is set. If the finding is confirmed, Meta could face fines of up to 6% of its total annual worldwide revenue, alongside orders to change the products. The Commission wants autoplay and infinite scroll switched off by default, and screen breaks added. It also recommends that Meta rework its algorithm to serve less personalized content.

In April, the Commission said the company was failing to keep under-13s off Facebook and Instagram, and in October 2025, it accused Meta and TikTok of blocking researcher access to platform data. TikTok was separately found to be unlawfully addictive in February 2026. Also, an expert panel convened by Commission President Ursula von der Leyen is expected to present recommendations on social media limits for children by July 17. At least 10 member states, including France, Italy, and Spain, are already drafting their own rules.

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The FIFA World Cup, which took effect earlier this month, has also increased interest around prediction markets, as thousands of contracts connected to sports outcomes pulled in an insane wave of activity. Numbers tracked by Dune Analytics show a dramatic jump in activity on the U.S. side of Polymarket. Daily turnover was sitting near $50 million around the middle of May. By June 20, that figure had climbed beyond $200 million. Overseas trading also accelerated. Weekly volume on the international platform reached new highs after softer conditions earlier in April and May.

Polymarket hits $1 billion revenue amid FIFA World Cup frenzy

The American exchange first went live in December. Its arrival followed years of regulatory issues that kept Polymarket out of the U.S. market. Back in 2022, the company could not legally operate there because registration requirements had not been met. The situation changed after both the Commodity Futures Trading Commission and the Department of Justice ended their reviews without filing charges.

The US operation now runs under CFTC oversight. A Polymarket spokesperson allegedly told CNBC, “Polymarket is a product-led company. We spent the last five years building the world’s largest prediction market and understanding how people engage with markets at scale. We are applying those learnings to our U.S. platform, where our focus is on intuitive market experiences, institutional-grade liquidity, and a consumer experience that sets the standard for the category.”

While trading activity is climbing, two US senators recently asked for federal scrutiny of the online presence of the platform, according to the Wall Street Journal. In a letter sent to CFTC Chairman Michael Selig, John Curtis and Adam Schiff wrote that the allegations were “deeply troubling and demand immediate scrutiny.” The lawmakers noted that the public-facing behavior alleged here does not resemble a sober financial market designed for hedging or price discovery.

They also claimed that they remain concerned that the Commission is neither enforcing the law appropriately nor is equipped to serve as a federal gambling regulator. Their request asked whether regulators are examining Polymarket and whether the conduct described in the reporting could violate federal rules. At the same time, a separate CFTC inquiry into Polymarket is underway. News of that review surfaced after the agency had already closed a broader investigation last year.

The Journal reported that the company paid content creators to record simulated trades on imitation websites and used workers outside the United States to help spread those clips online. The report said the campaign targeted American audiences despite restrictions that have blocked US users from trading on the international website since 2022. Journal reporters examined 1,105 videos, most of them featuring college-age creators. None disclosed payment from Polymarket.

According to the reports, nearly 10% allegedly used modified headlines or old footage to create the impression that traders had earned almost $900,000. The report said those positions would actually have produced losses exceeding $166,000. Several clips described the activity as “free money.” Meanwhile, the consumer advocacy group National Association of Consumer Advocates (NACA) filed a lawsuit against Polymarket, CEO Shayne Coplan, and CMO Matthew Modabber earlier today.

The complaint alleges that college students were targeted through misleading advertising that did not properly communicate the risk of losing money. The filing said that: “Polymarket aimed to attract young people to place bets on their platforms using a method likely to be effective: showing them social media videos of popular and respected young people enjoying a Polymarket platform. But rather than pursue this goal lawfully, Defendants used many layers of manipulation to trick college-aged consumers, who suffered significant harm as a result.”

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While 11 victims have been identified so far, the final count may still increase as investigators continue to trace more transactions. Polymarket has faced phishing and social engineering attacks since last year. Each one exploited different entry points but followed the same playbook: tricking users into handing over credentials, then clearing their wallets before they notice. Earlier this month, Polymarket’s VP of Engineering, Josh Stevens, addressed a case where a user was swindled out of more than $2 million.

The victim had entered a one-time password into a fake website that looked exactly like Polymarket, which allowed the attacker to compromise the victim’s Magic Link wallet (an email-based login system) and drain their funds instantly. Stevens stressed that while the impact was massive, the breach took place on a scam site and did not stem from a flaw in Polymarket’s own platform. That attack came after a $520,000 drain from the platform’s UMA CTF Adapter contract on Polygon in May. According to on-chain investigator ZachXBT, the attack was caused by a compromised deployer key.

Polymarket users continue to face phishing risks

The phishing risk facing Polymarket users is compounded by growing speculation around a potential POLY token airdrop. On June 25, X user Tiptop noted that Polymarket had quietly updated its FAQ page, removing language that previously stated the platform “does not have a token” and scrubbing references to having no plans for an airdrop or token generation. Polymarket CMO Matthew Modabber confirmed token and airdrop plans in an October 2025 interview.

Modabber said that the team wanted to create “a token with true utility, longevity, and to be around forever,” as Cryptopolitan reported. That confirmation prompted users to adjust their trading behavior in hopes of qualifying for a future distribution. The hype around potential airdrops makes it easy for scammers to trick people with fake eligibility checkers and claim pages. Another round of airdrop speculation has started spreading on social media, as Web3 profiles have reported that Polymarket recently removed the explicit denial of an airdrop from its FAQ page.

The risks on the platform have gone beyond phishing. Last December, SlowMist found a Polymarket copy-trading bot on GitHub embedded with malicious code meant to steal and transmit private keys to hackers. Another investigation conducted by StepSecurity in March also uncovered a compromised GitHub organization that was distributing fake trading bots designed to compromise user accounts. The platform also faces reputational headwinds.

According to a Wall Street Journal investigation, Polymarket paid influencers around $2,000 to $3,000 per month to post scripted videos showing fake trading profits. Apparently, the influencers were told to hide that they were being paid, and even ordered to redo clips if they weren’t exciting enough. They were also instructed to make the fake winnings appear as if they were real, organic experiences. In addition to the phishing campaigns and malicious bot issues, it raises concerns about user safety.

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The European Parliament’s important Committee on Economic and Monetary Affairs (ECON) adopted on Tuesday the so-called Single Currency Package of legislative proposals. The laws are designed to establish a legal framework for a digital version of the common currency while also ensuring that cash remains a viable option throughout the euro area. The digital euro file was approved by 43 members of the committee, with 14 voting against and one abstention, the legislative body detailed in an announcement on its website.

Digital euro moves closer to launch

The central bank digital currency (CBDC) will be an electronic form of money issued by the European Central Bank (ECB) that would work both online and offline, the press release noted. European officials claim the latter option, which will be realized through local storage devices, would be “equivalent to using physical cash,” up to the loss of funds in case of losing the carrier. They also say the digital euro system will ensure the privacy of transactions, thanks to technologies such as zero-knowledge proofs, and that the ECB would have no access to identification data.

Nevertheless, the EU authorities have also addressed worries that the CBDC may threaten the survival of euro banknotes and coins, whose legal tender status will be guaranteed. Another approved proposal aims to safeguard the role of euro cash. It must remain widely accepted and accessible in eurozone countries, which will be required to prepare for disruptions in digital channels. Thus, businesses would not be allowed to reject cash payments, and member-states would be obliged to regularly check its availability, especially with vulnerable social groups in mind, such as the elderly and unbanked people.

“With the single currency package, we are protecting citizens’ freedom to choose how they pay,” commented Fernando Navarrete Rojas, the EP’s lead rapporteur on the digital euro. He also insisted: “The digital euro will complement cash, never replace it. No one should be forced away from cash, and no one should be left without a secure, resilient, and genuinely European digital payment option.” The positive vote at the ECON is paving the way for further advances in the EU’s complex legislative process. The legislation is expected to be adopted by the end of 2026.

It also opens the door for more negotiations on the realization of the digital euro project, which will now focus on the final design of Europe’s digital currency. The European Central Bank hailed the progress in a statement posted on X: “The monetary authority’s reaction came one day after ECB President Christine Lagarde expressed hope that the initiative will move to its next stage, which will be “of a more technical nature.”

That will lead to the launch of a pilot phase of the digital euro, the governor said, emphasizing the need to ensure that all Europeans can have a “good experience” with the digital incarnation of the common currency. In mid-June, Lagarde rallied support for the digital euro in the face of dollar-backed stablecoins and U.S.-dominated global payment systems, as reported by Cryptopolitan. Meanwhile, legislators across the Atlantic are taking steps to prevent the Federal Reserve from issuing a digital dollar. A new Senate bill aims to impose a respective ban until 2030.

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Amazon MGM Studios confirmed on Thursday that it will not release “Artificial,” the director Luca Guadagnino’s film that chronicles Altman’s chaotic 2023 firing and rehiring at OpenAI. Mike Hopkins, who runs Prime Video and Amazon MGM Studios, informed Guadagnino and his producing team that Amazon would walk away from the planned release. The decision comes months after Amazon committed $50 billion to OpenAI in a February deal that expanded on a $38 billion cloud computing agreement signed in November 2025.

Amazon pulls plug on Sam Altman biopic ‘Artificial’

“We believe that Artificial will be better served if it were released by a different studio and are working closely with the filmmaking team to find the film a new home,” an Amazon spokesperson said. Andrew Garfield stars as Altman in the film, which was written by Simon Rich. Yura Borisov played OpenAI co-founder Ilya Sutskever. Monica Barbaro portrays former OpenAI CTO Mira Murati, while Ike Barinholtz plays Elon Musk. The cast also includes Cooper Hoffman, Jason Schwartzman, Billie Lourd, Mark Rylance, and Chris O’Dowd.

Altman was reportedly painted in an unfavorable light in the early version of Rich’s script, with one scene featuring computer scientist Geoffrey Hinton calling Altman “one of the most manipulative people on the planet.” A source familiar with internal workings at Amazon told reporters that the finished film’s tone turned considerably darker than what was originally pitched, and this led Hopkins to halt the release after watching a cut. An early viewer reportedly stated that Altman and Musk are the two characters audiences would “like the least.”

The business relationship between Amazon and OpenAI predates this deal by years. Amazon was among OpenAI’s earliest investors in 2015. Altman and Amazon founder Jeff Bezos have built a personal friendship over the past decade. Altman attended Bezos’s wedding to Lauren Sanchez in Venice in 2025. That friendship now sits alongside a corporate partnership worth tens of billions. Amazon’s February investment gave OpenAI access to Amazon Web Services infrastructure, including customized AI model development.

Jeff Bezos’ alleged influence and Altman’s legal tussle

With that much capital flowing between the two companies, releasing a film that portrays Altman as power-hungry and manipulative was always going to be an uncomfortable proposition. The film reportedly had a $75 million production and marketing budget. Amazon had reviewed every early iteration of the script before hiring Guadagnino to direct, meaning the studio knew the subject matter from the start. The shelved biopic adds to a public profile that continues to court conflict for the OpenAI CEO.

In May, a jury in Oakland rejected all of Elon Musk’s claims against OpenAI after a three-week trial. Florida Attorney General James Uthmeier filed the first state-led lawsuit against OpenAI and Altman in June, calling ChatGPT a “dangerous product” and seeking potentially billions in penalties. Altman also has close ties with the Trump administration, adding a political dimension to his already complicated public image.

The film had been positioned for a late 2026 awards qualifying run followed by a wide release in early 2027. It would have competed with Aaron Sorkin’s “The Social Reckoning,” a sequel to “The Social Network” that also deals with tech industry power. But with the latest developments, that release strategy is now in limbo. With Amazon out of the picture, the studio is now shopping the project to rival distributors through talent agency CAA.

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In a blog post published on June 17, Microsoft Threat Intelligence and Microsoft Defender experts exposed a malicious campaign that has been draining crypto wallets without victims noticing. Microsoft security experts laid out a mix of old-school USB worm tactics and modern anonymity tooling that made the malicious program undetectable for months. According to the researchers, the malicious campaign could execute clipboard theft, wallet address replacement, worm-like spreading, and Tor-based communication into a single program. The program also retained access to the local machine long after the malicious code was executed.

Microsoft flags new Windows crypto stealer program

In its detailed blog, Microsoft revealed that the infection began in the old-fashioned way, via a USB stick. The malware then accessed shortcut files dropped into removable drives. Once plugged into a machine, the worm component activates immediately. The worm component hunts down ordinary files like DOCs, spreadsheets, and PDFs on the device, hides the real ones, and replaces them with fake shortcuts carrying the same names.

Once this is done, the unsuspecting Windows users click on the shortcuts, thinking they are opening the typical Word or Excel file, but instead, the action triggers the malware. The malware then spreads itself to the machine’s USB drive and sets up scheduled tasks to keep it running after a reboot, and excludes itself from Microsoft Defender scans. When the actual clipper is activated in the second phase, the script-based payload leans on Windows ScriptHost and Active X objects rather than a typical installer, making it extremely hard to detect.

Once everything is set up, the malware launches a Tor client in a hidden window and generates a unique victim ID, registers itself with a command-and-control server hidden behind a Tor onion address. This way, the malware can successfully channel information through that hidden channel without being detected. The security team at Microsoft explained that the malware settles into a loop, polling its operators and scanning the clipboard roughly every half a second.

The program is specifically developed to recognize 12-or 24-word BIP39 seed phrases. The malware scans for Ethereum keys and Bitcoin WIF-format private keys, saves a local backup, and pushes it out to the attacker’s server over the Tor network. It is designed to retry the same sequence of events multiple times until the push is successful. The program then deletes the local copy, only upon a successful push, and takes multiple screenshots every second, giving the attackers a visual read of the victim’s wallet balance and activity.

If a wallet address shows up in the clipboard, the malware can swap it for one controlled by the attacker before the victim pastes it. Copy a Bitcoin address to send a payment, and what actually lands in the destination field might belong to someone else entirely. Microsoft Defender Antivirus now flags the threat as Trojan:Win32/CryptoBandits.A, and Defender for Endpoint watches for behaviors like suspicious JavaScript processes and curl-based data exfiltration.

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These new features address a growing pain point for large companies, as the cost of AI tools rises alongside broader employee adoption. Power users can burn through credits quickly, and these features will help administrators have better visibility into where the spending is going. The company’s Global Admin Console now consolidates ChatGPT and Codex credit usage into one dashboard, according to the OpenAI announcement. Administrators can filter consumption data by individual user, product, and AI model.

OpenAI unveils usage analytics and spending controls

The console also helps with data about trends over time, which would assist IT teams in spotting emerging usage patterns and identifying which employees are consuming the most credits. OpenAI also claims that the data is available to be programmed straight into companies’ financial systems through a unified Cost API. OpenAI first introduced per-role credit limits for custom roles earlier in 2026. The update extends that system further through three different levels.

Firstly, workspace-wide defaults let admins set a baseline credit cap that applies to every employee. Secondly, group-level limits allow different budgets for different teams. Then lastly, individual overrides give specific users higher capacity without raising limits for everyone else. On the employee side, workers can now see how much of their credit budget they’ve used and submit requests for more, including a note explaining what they need the additional capacity for.

Zipline co-founder Ryan Oksenhorn said the company has been using Codex since January 2026 and recently expanded the product’s adoption to the whole company. “We asked the team at OpenAI to build usage analytics to help find and train up folks who haven’t adopted Codex, and for granular usage controls to keep spend predictable,” Oksenhorn said in the OpenAI statement.

He added that the tools are helping Zipline “faster scale productivity of our employees while keeping safeguards in place.” The analytics and updated controls are available immediately to all ChatGPT Enterprise workspaces. Individual employees in those workspaces can view their own credit usage through their workspace settings.

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The lawsuits, filed in Franklin Circuit Court, add to a growing fight over whether online prediction markets should be regulated as federally supervised derivatives markets or as gambling products subject to state law. Coleman’s office alleges that Kalshi and Polymarket allow users to bet on game outcomes, betting odds, and individual player statistics while presenting those trades as “event contracts” to avoid Kentucky gambling rules, according to the Lexington Herald-Leader.

The attorney general’s office also said nearly 89% of Kalshi’s trading activity was tied to sports betting, generating more than $23 billion in contract trading volume in 2025. Kentucky said its claims are based on alleged violations of the state’s consumer protection laws, the Loss Recovery Act, and rules governing prediction markets. Coleman’s office is asking the court to impose penalties of up to $2,000 for each violation of the Kentucky Consumer Protection Act and $10,000 for each violation involving consumers older than 60.

Kentucky initiates legal proceedings against prediction platforms

Kentucky also named Coinbase in the Kalshi-related case, alleging that the company acted as an affiliate or partner in unauthorized sports contracts, according to Spectrum News 1. The complaint argues that Kalshi used affiliate relationships to expand access to sports-event contracts while avoiding Kentucky’s sports-wagering licensing system. The state also accused the companies of failing to provide gambling addiction resources required under Kentucky law.

In Kentucky, only licensed horse-racing organizations can receive approval to operate sports wagering, with the Kentucky Horse Racing and Gaming Commission serving as the regulator. Aside from that, a separate state law, the Wagering Consumer Protection Act, takes effect on July 15. It will prohibit licensed sportsbooks from contracting with prediction-market operators such as Kalshi or Polymarket. The third lawsuit targets VGW, the operator behind Chumba Casino, Global Poker, and LuckyLand Slots.

Coleman’s office said VGW runs sweepstakes casino sites that mimic slot machines and table games using virtual “Sweeps Coins,” which users can purchase with real money and exchange for cash prizes. The lawsuits filed by Kentucky are part of a broader state-federal showdown over prediction markets. Several states have moved against prediction-market operators, arguing that sports-event contracts and similar products amount to illegal gambling. The federal response has been aggressive.

CFTC goes after states for orders against prediction platforms

In April, the Commodity Futures Trading Commission (CFTC) sued Arizona, Connecticut, and Illinois after those states issued cease-and-desist orders against prediction-market companies. Arizona had also filed criminal charges against Kalshi for alleged violations of state gambling law. A federal court later issued a temporary restraining order blocking Arizona’s criminal prosecution. The CFTC has since expanded its legal campaign. On April 28, the agency sued Wisconsin after the state filed civil actions against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase.

The commission also sued New York, Minnesota, Rhode Island, and New Mexico to block those states from applying gambling laws to CFTC-registered contract markets. “States cannot circumvent the clear directive of Congress,” CFTC Chairman Michael S. Selig said in the Wisconsin filing. “If you interfere with the operation of federal law in regulating financial markets, we will sue you.” The CFTC argues that Congress gave it exclusive jurisdiction over event contracts traded on designated contract markets.

Under that argument, state gambling laws cannot override federal regulation of CFTC-approved markets. Kentucky is also facing a separate lawsuit from the prediction-market industry. A coalition including Kalshi, Crypto.com, Polymarket, and Robinhood sued the state on June 12 over Kentucky’s 14.25% excise tax on prediction-market transaction fees. The tax is the first targeted levy of its kind in the United States, according to the Associated Press. The Coalition for Fair Markets has argued that the tax discriminates against federally regulated derivatives markets.

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According to an earlier Cryptopolitan report, the Pentagon released the update just as the two countries kept tightening controls on technology, data, energy, and manufacturing. The Ministry of Commerce of China announced on Saturday that America went beyond its limits in terms of national security concerns, as well as exerted governmental influence to pressure the business of China. The ministry demanded the withdrawal of such decisions. It also asked Washington to deal with Chinese companies in a fair manner and build a stable relationship with China.

China warns the US to cancel its categorization of Chinese platforms

China was direct in its latest warning, noting that, “Otherwise, China will take resolute and forceful countermeasures, and the consequences and responsibility arising therefrom will rest entirely with the US side.” The Chinese embassy in Washington rejected the blacklist. Spokesman Liu Pengyu said firms from China follow the laws of the countries where they operate. “The US should stop its wrong practice and create a fair, just, and non-discriminatory environment,” Liu said.

The Pentagon list is known as the Section 1260H list. US law requires the Defense Department to update it yearly through 2030. A company can ask the Pentagon to review its case and submit evidence to challenge the label. Alibaba said there was “no basis” for adding the company, and that being named on the 1260H list does not just automatically ban exports or stop a company from serving American customers. The US Commerce Department runs a separate Entity List, and that list can block or limit access to American technology, Alibaba explained.

The 1260H list is one of several tools Washington uses as the US and China separate in sensitive sectors. On Saturday, Chinese regulators announced stricter rules for financial information services. The Cyberspace Administration of China said companies must sort data into four groups: core, important, sensitive general, and routine general. Officials said each category would depend on its value, sensitivity, and the damage a leak could cause. Six other agencies issued the rules, including the People’s Bank of China.

The rules are part of Beijing’s data security system. China passed broad laws before adding sector rules. “Financial information services are developing in an orderly manner, and the volume of data is expanding … which urgently requires standardised, classified and graded management,” the guidelines said. The new rules do not cover state secrets or military information. Meanwhile, as previously reported, Trump announced Marco Rubio as Secretary of State and Mike Waltz as National Security Advisor.

Neil Thomas, a fellow at the Asia Society Policy Institute’s Center for China Analysis, said the choices showed that Trump planned to put China at the center of his foreign policy. Before Trump’s January 2025 inauguration, Vice President JD Vance and Elon Musk met separately with Chinese Vice President Han Zheng in Washington. Han attended as Xi Jinping’s special representative. His visit showed Beijing wanted working ties with the new US administration even as both sides added more pressure in trade, technology, security, and industry.

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The prediction is largely thanks to the latest jobs report and consumer inflation at 4.2% annually, a figure last seen three years ago. The Federal Reserve committee, in its last statement, leaned toward easier policy, but officials may remove that signal this week. As Cryptopolitan previously reported, three regional Fed presidents opposed the wording at the April meeting. Keeping it now would draw attention because hiring remains strong while prices are rising faster. In addition, oil prices dropped last week with the prospects of peace becoming more likely in the ongoing war in Iran, but crude prices are still much higher than they were before the war.

Kevin Warsh and Fed officials lean towards easier policy

According to reports, high oil prices lead to higher costs of transport, production, and at home. Any attempt by Kevin to dismiss those risks or preserve the softer message could look like support for Donald Trump’s position. Trump nominated him and keeps demanding lower rates. He also abandoned decades of US presidential restraint by publicly attacking former Fed chair Jerome Powell for refusing to cut rates. Those attacks followed Kevin into his confirmation hearing.

Senators pressed Warsh about loyalty to Trump and his ability to protect the central bank’s independence. His first decision and press conference are expected to provide an answer. Most board members are expected to support a hold, which matches the latest employment and inflation numbers. Warsh also has room to resist the president. Removing a Fed leader over a policy dispute is difficult. Earlier campaigns against Powell and Fed governor Lisa Cook failed.

That kind of protection allows Kevin to put longer-term financial stability ahead of short-term political demands. Kevin has appeared more receptive to cuts over the past year because he thinks AI might reduce inflation and mentioned the trimmed-mean indicators pointing to lower prices. His statements, of course, resonate with Donald Trump, but they have also been beneficial to Kevin himself, since this largely helped him get the Fed chair position, as Trump made clear when he announced it.

Kevin’s background has been contradictory. During the administration of Barack Obama, Kevin was advocating for an increase in interest rates after the financial crisis. He has even accused the Fed of buying government and mortgage-backed bonds excessively. However, during Trump’s first presidential term, Kevin and his previous employer, Stanley Druckenmiller, were against tightening monetary policy despite historically low unemployment. When the Fed cut rates in September 2024 under President Joe Biden, after inflation had cooled, Kevin called the decision “puzzling.”

Even if Warsh maintains a politics-free room, the challenge is no easier. Before the oil shock from Iran, inflation was a pre-existing issue. Artificial intelligence may help businesses save money, but there’s a possibility that it can hurt job growth and lower demand. As Cryptopolian reported, Warsh is eager to reduce the $6.7 trillion balance sheet of the Fed, and this process of quantitative tightening could also lead to less liquidity in the market, thanks to the instability in US Treasury markets. Kevin has also criticized forward guidance and intends to abolish the Fed’s dot plot, which helps predict rate movements for the committee members.

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