Brief

Kevin Warsh has been sworn in as the new leader of the US Federal Reserve, taking the helm at a critical juncture for monetary policy. He faces immediate challenges including an economy influenced by the AI boom, alongside potential shocks from oil prices and tariffs. Warsh has pledged to lead a reform-oriented Fed, learning from past experiences and moving beyond static frameworks. AI

President Trump has called off plans for a new executive order on artificial intelligence, citing concerns that it could hinder America's technological lead over other nations. The order, which was expected to address cybersecurity risks posed by advanced AI models like Anthropic's Claude Mythos, was postponed due to disagreements over its text and potential impact on innovation. This decision reflects internal divisions within the administration regarding the balance between promoting AI development and mitigating potential threats. AI

Federal enforcement actions related to nonprofit fraud have increased significantly, reaching a record $6.8 billion in settlements and judgments in 2025. While data on the prevalence of nonprofit fraud is limited, with an estimated 5% of annual revenue lost to fraud, organizations are less likely to receive fraud awareness training compared to private companies. This trend has raised concerns, particularly after the indictment of the Southern Poverty Law Center, suggesting a broader governmental shift towards more aggressive oversight of charitable activities. AI

The U.S. Treasury Department has imposed new sanctions targeting Iran's financial sector and its oil trade. The sanctions are aimed at an Iranian exchange house, Amin Exchange, and its network of front companies across multiple countries, which allegedly facilitate billions in foreign currency transactions to help Iran evade sanctions. Additionally, 19 vessels involved in shipping Iranian petroleum and petrochemicals have been blocked. AI

A majority of Federal Reserve officials indicated a willingness to raise interest rates if inflation persists above the 2% target, according to minutes from the April policy meeting. This sentiment suggests a potential shift towards tighter monetary policy, influenced by factors like the Iran war and rising energy prices. Meanwhile, Fed Chair Jerome Powell announced he will remain a governor for an undetermined period, citing concerns about political interference and the Fed's independence, a move that deviates from modern tradition and denies President Trump an immediate board vacancy. AI