A potential U.S.-China AI agreement?
Summary
Treasury Secretary Scott Bessent discusses a new US-China AI dialogue aimed at establishing incident notification mechanisms and addressing security threats, though no concrete research limits were agreed upon. The episode also covers the escalating Middle East conflict, where Houthi attacks on Saudi Arabia have driven oil prices near $100 a barrel. Economist Julia Coronado explains how these energy costs are broadening inflation and forcing the Federal Reserve to maintain higher interest rates, impacting consumer borrowing and housing markets.
Topics discussed
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US-China preliminary talks on AI governance
Lack of concrete AI limits and US security concerns
China's reaction and upcoming Trump-Xi meeting
Treasury Secretary Bessent on AI incident communication
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Middle East escalation and puzzling drop in oil prices
Inflation spread and Fed response to gas price shock
Expectations for upcoming Fed officials' speeches
Consumer impact of higher interest rates
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