Forward-looking approach in combating AI cyber threats urged by Fed nominee

FedScoop reports that Kevin Warsh, who has been nominated by President Donald Trump to lead the Federal Reserve, has encouraged the central bank to act preemptively in response to the rise of new AI models, such as Anthropic's Claude Mythos, that could threaten the financial sector.

Cybersecurity experts warned that there is significant potential for a new generation of cyber attackers to leverage AI models to exploit vulnerable financial networks in the industry. Warsh recommended that the Fed modernize its risk assessment and planning to better respond to new threats from fast-growing technologies like AI. He sees the U.S. has a major advantage over AI but also a risk if misused. He said the U.S. has a major advantage in AI, but also faces risks if it is misused. He stressed that the central bank must stay ahead of developments.

Warsh also said AI is likely to boost productivity, but its impact on jobs remains uncertain and delayed. He pushed for major reforms to U.S. payment systems to remain globally competitive.