Latest / THE DAILY BRIEF / Trump admin grapples with AI concerns

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Trump admin grapples with AI concerns · THE DAILY BRIEF

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  Speaker 1: Joining us now, White House National Economic Director Kevin Hassett. Director,
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  Speaker 1: welcome back to Fox News Sunday.
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  Speaker 2: Good morning.
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  Speaker 1: Okay, so let's start here with the warnings from Dario Amadei.
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  Speaker 1: He says this, AI brings risks of losing control of
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  Speaker 1: AI systems, misuse of AI for cyber attacks and bioterrorism,
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  Speaker 1: and serious economic disruption. He goes on to say that
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  Speaker 1: they've got to slow the pace and use that time wisely.
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  Speaker 1: He said, listen, he's worried in six to 12 months,
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  Speaker 1: these AI agents that carried out this recent just attack
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  Speaker 1: that had no human interaction whatsoever. they can actually take
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  Speaker 1: over the Internet. You talked earlier this year about maybe
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  Speaker 1: something like an FDA approval process, an executive order that would,
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  Speaker 1: you know, test AI products before they go out, quote,
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  Speaker 1: into the wild. What's the status of that? Right.
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  Speaker 2: Well, if you look at Dario's letter, it really presents
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  Speaker 2: a roadmap for the private sector to get ahead of
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  Speaker 2: the curve on this. And while he's saying that we
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  Speaker 2: need to slow things down, he's also calling for sort
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  Speaker 2: of independent observers to come into the AI companies and
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  Speaker 2: to make sure that they're making sure that they're safe.
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  Speaker 2: You know, the bottom line is that AI is advancing
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  Speaker 2: so rapidly that, you know, the cybersecurity you've got on
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  Speaker 2: your computer was invented a few years ago. But AI is,
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  Speaker 2: you know, accelerating so rapidly that maybe it's going to
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  Speaker 2: be able to go through and break the defenses that
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  Speaker 2: we have from two or three years ago. But at
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  Speaker 2: the same time that's happening, these AI companies are developing
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  Speaker 2: new defenses. I think that getting AI to be safe
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  Speaker 2: is a solvable problem. And I think that Amadai's letter
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  Speaker 2: is a guide to how to do that.
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  Speaker 1: So do you think that this is a role for
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  Speaker 1: the executive branch, for the legislative branch? I mean, you've
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  Speaker 1: got members like Congresswoman Anna Paulina Luna, who is a Republican,
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  Speaker 1: saying she thinks there should be things like kill switches.
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  Speaker 1: She thinks there should be a special session. There needs
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  Speaker 1: to be federal regulation. Right.
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  Speaker 2: Well, this is something that, you know, the president's team
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  Speaker 2: led by Sean Carencross and Michael Kratzios are definitely studying
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  Speaker 2: the matter. And I think that if you look at
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  Speaker 2: the movement that the private sector is making, the fact
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  Speaker 2: that Elon and OpenAI folks have already supported the actually
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  Speaker 2: pretty sensible moves that Dario's advising, I think that that's
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  Speaker 2: a good movement forward, a good step forward.
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  Speaker 1: Let's get to economic news, and I'll start with the
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  Speaker 1: good news. Our Facts News Power Rankings analysis this week
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  Speaker 1: says that President Trump's had a strong economic record in
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  Speaker 1: some ways. Just last week, the U.S. added 162,000 jobs,
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  Speaker 1: about triple what economists had expected. The unemployment rate was
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  Speaker 1: steady at 4.1 percent. The stock market also continues to grow,
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  Speaker 1: even as Iran and tariffs drive volatility. But if you
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  Speaker 1: look to recent polling, Reuters Ipsos has this. On the U.S. economy,
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  Speaker 1: the president's underwater by 33 points, cost of living underwater
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  Speaker 1: by 46 points, and inflation and prices underwater by 48 points.
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  Speaker 1: So you've got some good data there. When does it
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  Speaker 1: start to make a difference in everyday Americans' lives?
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  Speaker 2: Well, if you look at the history of elections and
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  Speaker 2: economic data, then it's what's in the truth of the
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  Speaker 2: data that influences people's votes, not these surveys of what
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  Speaker 2: their sentiment are. And if you look at the sentiment surveys,
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  Speaker 2: then they tend to be heavily weighted towards Democrats who
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  Speaker 2: are mad about everything right now that we're accomplishing. But
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  Speaker 2: the bottom line is, if you look at the same
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  Speaker 2: period over the Biden administration, the same beginning of the
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  Speaker 2: period that we've just experienced, then Biden inflation was about
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  Speaker 2: 10 percent. Inflation all the way up through today from
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  Speaker 2: when Trump took office is a little bit below 4%,
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  Speaker 2: 3-point-something percent. If you look at inflation three months prior,
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  Speaker 2: it was 8.2% because of the surge in oil prices,
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  Speaker 2: and it was only 0.1% over the last three months.
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  Speaker 2: And so inflation is coming under control. Wheel wages are growing.
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  Speaker 2: GDP growth in the third quarter is looking like it's 4.5%.
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  Speaker 2: And so that's the kind of momentum that usually when
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  Speaker 2: you go into an election– it means that the Republicans would.
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  Speaker 2: And don't believe me, there's a guy named Ray Fair
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  Speaker 2: at Yale who's been running models about this forever and
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  Speaker 2: ever that says the economic data outperforms sentiment surveys like
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  Speaker 2: 100 percent.
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  Speaker 1: OK, so let's look at one other analysis that we had, too.
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  Speaker 1: When the Democrats were facing this midterm thing in 2022
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  Speaker 1: with President Biden. He was underwater on the economy by
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  Speaker 1: 23 points. That's 10 points better than where the president
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  Speaker 1: is right now. And Democrats last nine seats in the
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  Speaker 1: midterms there. But your prediction is that somehow Republicans will
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  Speaker 1: outlive that curse or historic rate?
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  Speaker 2: Right. Or, no, your assertion is that that one data
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  Speaker 2: item is meaningful in an empirical way if you look
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  Speaker 2: at all of history. The bottom line is that Biden's
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  Speaker 2: economy right before that election was truly horrible. We were
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  Speaker 2: heading up towards almost... close to above 10% to 12% inflation.
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  Speaker 2: Real wages are dropping by about 3,000. And so then
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  Speaker 2: you ask yourself, OK, if that's a reasonable estimate of
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  Speaker 2: what people think about the economy, how come now that
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  Speaker 2: we have this booming economy, they say that it's worse?
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  Speaker 2: And the answer is that they're surveying Democrats who hate
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  Speaker 2: President Trump, that's all. And so therefore, I disregard that number.
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  Speaker 1: Okay, so let's talk about looking ahead to the rate
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  Speaker 1: decision coming from the Fed. The Wall Street Journal editorial
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  Speaker 1: board says this. The best way to get real wages
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  Speaker 1: rising is for Mr. Trump to give Mr. Wurst, the
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  Speaker 1: new Fed chair, the running room he needs to get
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  Speaker 1: inflation down to the Fed's 2% target. That may start
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  Speaker 1: with a quarter point increase in interest rates at next
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  Speaker 1: week's Federal Open Market Committee meeting, which would signal to
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  Speaker 1: markets that the central bank is serious about inflation. Are
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  Speaker 1: you confident that the Fed director has got... the independency
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  Speaker 1: needs potentially to do that? And how would that land
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  Speaker 1: at the White House if there is an increase?
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  Speaker 2: Well, 100 percent. President Trump has given Mr. Warsh the
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  Speaker 2: runway to do what he thinks is right. He has
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  Speaker 2: enormous faith in him. He'll look at the data and
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  Speaker 2: he'll get the board to agree to something. And if
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  Speaker 2: it's a rate hike, the president will, you know, I'm
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  Speaker 2: sure he's not going to be super happy about it,
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  Speaker 2: but he will defend the independence of Kevin Warsh above all.
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  Speaker 2: And I think that if it were me, if I
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  Speaker 2: look at the momentum for inflation, that it's basically gone
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  Speaker 2: down to almost nothing over the last three months. I'd
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  Speaker 2: be wary of a rate hike, especially if you go
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  Speaker 2: back and look at the history of the Fed. Then
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  Speaker 2: they've hiked rates ahead of an election only a couple
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  Speaker 2: of times all the way back to 1913. And so
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  Speaker 2: I think if you want an independent Fed, then one
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  Speaker 2: one thing the Fed does is it stays out of
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  Speaker 2: the way of elections.
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  Speaker 1: OK, well, we'll see. We will watch that closely this week. Director,
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  Speaker 1: we always appreciate your time.
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  Speaker 2: Great to be back.
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  Speaker 1: Thank you. Be sure to like and subscribe for all
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