Powell Defends Fed’s Independence

FINANCE
Powell Defends Fed’s Independence

Federal Reserve Chair Jerome Powell reaffirmed that the president lacks the authority to remove Fed board members, pushing back against speculation that Donald Trump could interfere with the central bank. Testifying before the Senate Banking Committee, Powell stated that such actions are “pretty clearly not allowed under the law.”

Trump has long criticized Powell’s handling of monetary policy, expressing frustration over interest rate decisions. Despite appointing Powell in 2018, Trump has alternately condemned him for raising, lowering, or keeping rates steady. After the Fed declined to cut rates in January, Trump accused the central bank of failing to address inflation.

Powell defended the Fed’s approach, citing a stable economy and inflation at 2.6%. Meanwhile, Trump and his advisors have explored ways to limit the Fed’s independence, including proposals for greater White House influence over monetary policy. If re-elected, Trump has vowed not to reappoint Powell as Fed chair.

TECH
OpenAI’s DeepResearch Sets AI Record

OpenAI’s new AI agent, DeepResearch, has set a new benchmark in artificial intelligence, completing 26.6% of "Humanity’s Last Exam"—a test designed to measure when AI surpasses world-class experts across multiple fields. This marks a threefold leap over previous top models, which only managed 9%.

Powered by OpenAI’s o3 model, DeepResearch excels in chemistry, humanities, social sciences, and mathematics, synthesizing complex research in minutes. The exam, created by AI safety expert Dan Hendrycks, was inspired by Elon Musk’s call for a test that challenges world-class experts.

Once AI surpasses 50%, it could signal the arrival of artificial general intelligence (AGI)—machines with human-level cognitive abilities. OpenAI CEO Sam Altman believes AGI is within reach, while Google DeepMind CEO Demis Hassabis predicts it could arrive in five years. As AI rapidly advances, society must prepare for the implications of machines achieving human-like intelligence.

TECH
SoftBank Reports Surprise Quarterly Loss

SoftBank posted a surprise quarterly loss as its Vision Fund investments turned negative, missing revenue expectations. The company reported a net loss of 369.17 billion yen ($2.4 billion) for the quarter ending December 31, compared to an expected profit of 298.53 billion yen.

The Vision Fund segment, which includes administrative costs and currency fluctuations, reported a 309.93 billion yen loss. Vision Fund 1’s public portfolio value dropped 2.8%, with declines in Coupang shares and private investments falling 3.3%. Vision Fund 2 fell 3.7%, impacted by drops in Ola Electric Mobility and AutoStore, despite a surge in Swiggy’s stock after its 2024 IPO.

SoftBank is shifting toward AI investments, finalizing a $40 billion stake in OpenAI at a $260 billion valuation. This deal would make SoftBank OpenAI’s largest backer, surpassing Microsoft. It also launched SB OpenAI Japan, a joint venture to market AI tech to major Japanese companies.

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