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Bessent on AI 'shield'

1 d ago

Treasury Secretary Scott Bessent stated that AI developers must take responsibility for themselves rather than relying on a federal liability shield, emphasizing human accountability over AI, while also discussing US-China AI cooperation and economic impacts of the Iran war. In a CNBC interview, Bessent said "humans are responsible, not the AI," aligning with President Trump's opposition to regulatory crackdowns on the nascent industry. Bessent revealed he met Chinese Vice Premier He Lifeng for 12 hours to formalize AI-related conversations, including establishing a communication line for future AI incidents—such as uncontrollable agents, cyber threats, or bioweapons—and agreeing on leading AI dangers. The talks also focused on the U.S.-China temporary trade truce expiring Nov. 10, with a potential follow-up meeting in Shenzhen during the APEC summit in November. On economic policy, Bessent predicted interest rates will decline once the Iran war ends, citing increased oil supply. The Federal Reserve recently hiked benchmark rates to 3.75%-4% to curb inflation, despite Trump's calls for cuts. Bessent defended a $5 billion Treasury buyback amid rising 10-year yields above 5%—the highest since 2007—and mortgage rates topping 7%. He attributed yield increases to the Iran conflict and diesel price spikes, which are fueling Republican concerns about retaining House control in November's election. Bessent also backed Trump's ban of MS NOW, CNN, and Politico from the White House over alleged bias, as the outlets sued on First Amendment grounds.