Good morning. I'm Karen Moscow and I'm Alexis Christopherus. Here are the stories we're following today. Well, we begin in Bangkok here, Alexis, where Fed Chair Kevin Warsh spoke at the International Monetary Fund's annual meetings. In a moderated discussion early this morning, Warsh made no remarks on monetary policy or his outlook for the US economy apart from reiterating the Fed's commitment to price stability.
At the Federal Reserve, we made very clear that we would deliver price stability and we removed a dose of accommodation about a month ago. I don't prejudge meetings. I don't believe in saying now what I might do at the meetings that we have in the balance of this year. But that was the situation.
Disappointed half of the audience. They can all turn it off. It's a new chapter at the Fed and we don't — we're not in that business anymore.
And rate hike bets fell during Fed Chair Kevin Warsh's remarks. Warsh also talked about how global economic activity is flowing through the US.
What are we seeing in the global economy as it affects the US? I'm going to say broadly over the month or so that's transpired since then, the world has broadly conformed to our expectations.
We'll be meeting a couple more times this year and that will be the crystallizing moment. But right now we have structural growth. We have an investment surge.
It's not hitting every country at the same element. But in the United States, we're having a massive investment surge.
Fed Chair Kevin Warsh also called AI a major boost to productivity in his comments at the IMF annual meeting. And Karen, Fed Chair Warsh's task force on productivity and jobs will hold a field hearing in San Francisco next month. Warsh saying the task force will, quote, 'wrestle with issues including the economic impact of artificial intelligence.' Earlier this summer, Warsh established five task forces of outside experts that will study key areas of monetary policymaking.
Meanwhile, in Washington, Alexis, news from another task force. President Trump's AI task force will commission a report on technology risks. The Super Intelligence Task Force agreed to address risks related to cybersecurity, biosecurity, and model control and accountability as fears rise over the potential dangers posed by the technology. The task force will commission a report to evaluate concerns and develop protocols and mechanisms for labs to provide early warnings and systemized notifications to the government.
Now to a tragic story in Oregon. Authorities say a 16-year-old opened fire at an elementary school in Bend, Oregon, killing children and a teacher. Here's Bloomberg's Matt Piper.
Police say a 16-year-old used a gun to break through locked school doors and killed three children and a teacher. Bend Police Chief Mike Cray.
The deceased at the scene include three children, ages 5, 8, and 11, and one teacher. The shooter is also dead, shot, police say, by a community member who ran into the school when they realized what was happening. Investigators say they do not know if the attacker knew anyone at the school or if they were a former student. Matt Piper, Bloomberg Radio.
All right, Matt, thank you. And of course, we'll continue to bring you the latest developments on that story as they become available. We want to turn now to politics and the midterm elections because we're just a few weeks away. A key debate took place in Alaska last night between Republican Senator Dan Sullivan and Democratic challenger Mary Peltola. Sullivan emphasized his differences from President Trump just days after the president rallied for his re-election in the state. He says he opposed Trump's proposal to allow Russia to sell diesel in the international market.
I put a statement out opposing it. I don't think it's a good idea at all. I just led the effort on the Russian Sanctions Act that passed the Congress. So, I'm opposed to that.
Meanwhile, Democrat Mary Peltola aimed to portray Sullivan as part of the Washington establishment.
Prices are too high for hardworking Alaskans, and DC politicians are waging forever wars that are skyrocketing our costs.
Democrat Mary Peltola has consistently polled narrowly ahead of incumbent Republican Senator Dan Sullivan in a race that could decide control of the Senate. And Karen, we saw another key Senate debate a long way from Alaska last night in Maine, where incumbent Senator Susan Collins faced off with Democratic challenger Troy Jackson. Collins aimed to highlight her independent record as a longtime Republican senator.
At one point, I had organized people to vote against Secretary Hegseth.
At one point in the debate, a protester interrupted and yelled at Senator Collins about the environmental impact of data centers. It led to a viral exchange between Jackson and Collins.
So, this is obviously one of Troy's supporters.
Oh, shut up. I didn't — I don't even know who that kid is.
Democratic challenger Troy Jackson and Maine Republican Senator Susan Collins are within the margin of error in recent polling.
In Massachusetts, Alexis, it was the second and final debate between the two gubernatorial candidates, Governor Maura Healey and Republican challenger Mike Diehl, traded competing claims about taxes, energy costs, and government accountability. Healey and Diehl have one of their clearest splits on abortion, and it was on full display when moderators, presented by a consortium of media outlets, asked the candidates whether they would support an effort to repeal a law that makes it easier for a woman to receive the procedure later in pregnancy.
I trust women. I trust women and their doctors. Mike Diehl doesn't. Mike Diehl doesn't. There's only one of us here who will protect women's access to healthcare. I will protect women's access to health care in Massachusetts. Mike Diehl won't.
To say that I don't respect women is a cheap shot. You're better than that. And let's make sure we talk about the issues. And again, this is what politicians do. They want us to take extreme positions. They want us to hate each other. I see people as neighbors and we can solve problems together.
And Governor Healey holds a commanding lead in September polls from MassInc Polling and the University of New Hampshire Survey Center. Healey led both polls with more than 50% of the total vote while Diehl garnered less than 40% of support from respondents. Turning now to the latest developments in the war in Ukraine. A senior US official says President Trump did not order any limitations on Ukraine's access to SpaceX's Star Shield satellite technology. It follows accusations from Ukraine's President Zelensky that restricted access led to civilian deaths. Zelensky spoke earlier about the war and Ukraine's need for energy assistance.
Really, our agenda is energy needs. This is point number one. And of course, we want to end this war as quick as possible. We don't see now signals from the Russian side that they are ready to end this war. That's why we have to prepare for the winter.
Ukrainian President Volodymyr Zelensky was speaking at the EU leaders' summit in Brussels.
Now to the latest on the war in Iran. Alexis, President Trump declined to rule out using the mother of all bombs on Iran after the US midterm elections in an interview with Newsmax last night.
The mother of all bombs is not nuclear.
Okay. Not tactical nuclear.
No, it's not nuclear at all. This is just an extremely large bomb. It's like a tiny nuclear bomb. But the mother of all bombs is one big bomb. But it's not nuclear. No, I wouldn't use nuclear. We don't have to. We're the greatest nuclear power in the world. We have more in nuclear than Russia. Russia's second. China's third. And China's way behind, but they'll catch us within 5 years, which is, you know, the whole thing is a shame because I'd love to denuclearize if possible.
And President Trump mentioned the US is weighing a future strike against Iran's Pickaxe Mountain and its tunnel complex. And when asked if he trusted Israeli Prime Minister Benjamin Netanyahu, the president said, quote, 'I don't trust anyone.'
