International
“60 Minutes” Reports COVID May Have Leaked From Wuhan Lab, Slams “Curated” WHO Report
"60 Minutes" Reports COVID May Have Leaked From Wuhan Lab, Slams "Curated" WHO Report
Roughly one year ago, Zero Hedge was "permanently" banned from Twitter for daring to suggest that the novel coronavirus outbreak rocking the globe might…
Roughly one year ago, Zero Hedge was "permanently" banned from Twitter for daring to suggest that the novel coronavirus outbreak rocking the globe might have originated with a lab called the Wuhan Institute of Virology, a Level 4 Biosafety facility where scientists were - as fate would have it - researching coronaviruses, including viruses gleaned from bats.
When Chinese authorities identified a massive "wet market" in the city as ground zero for infections, suggesting the virus originated with some of market's wares, which including live civets and bats, considered delicacies by many Chinese, it was a scientist who first pointed out the lab's proximity to the market, and noted the likelihood that the virus had probably leaked from the lab via an unsuspecting scientists.
What followed was a barrage of US media stories claiming the lab leak hypothesis was "unsubstantiated" and a "conspiracy theory". NPR went so far as to publish a piece quoted a handful of scientists (almost all of whom had deep financial and professional ties to China) talking up China's lab-security protocols and dismissing the theory as completely baseless. Yet, reporting since then has confirmed official complaints about safety at the lab.
Yet, here we are, one year later, and after at least two attempts to send teams of WHO scientists to investigate the origins of the virus, no foreigners were ever allowed to freely investigate.
Despite this, the team compiled a report on the origins of the coronavirus - a report that essentially confirms the "official narrative" that was reported early last year: that the virus likely originated in bats with an unknown "intermediary" (some have suggested a civet) likely transferring it to humans. The report, which was reviewed and, according to reports, heavily censored by Chinese authorities, insists that a lab leak was "extremely unlikely," according to an advanced copy leaked to the AP.
Well, after taking Beijing's word for it (with a few notable exceptions) for the last year, the American press is finally showing some skepticism about the virus's origins. Case in point: on Sunday night, CBS's "60 Minutes" ran a feature story questioning the offiicial narrative about the virus's origins, citing the latest delay of the WHO report (which, again, was leaked last night), as suspicious.
Lesley Stahl interviewed Jamie Metzl, who complained Friday that the report was "compromised", and Wuhan Lab-affiliate Peter Daszak, as she poked holes in the official narrative more efficiently than any mainstream reporter we have seen.
Metzl started by claiming that the WHO "investigation" was completely useless, comparing it to a "study tour" where scientists only saw "what the CCP wanted them to see."
Jamie Metzl: I wouldn't really call what's happened now an investigation. It's essentially a highly-chaperoned, highly-curated study tour.
Lesley Stahl: Study tour?
Jamie Metzl: Study tour. Everybody around the world is imagining this is some kind of full investigation. It's not. This group of experts only saw what the Chinese government wanted them to see.
As 60 Minutes points out, Metzl, a former NSC official in the Clinton administration and member of a WHO advisory committee on genetic engineering, is one of more than two dozen scientists and officials (including virologists) who signed an open letter earlier this month calling for a new investigation to return to China. Obviously, at this point, Beijing has had more than a year to effectuate a cover-up.
During their converstaion, Metzl explained just how much control Beijing has had over what the investigators saw and weren't allowed to see.
Jamie Metzl: We would have to ask the question, "Well, why in Wuhan?" To quote Humphrey Bogart, "Of all the gin joints in all the towns in all the world, why Wuhan?" What Wuhan does have is China's level four virology institute, with probably the world's largest collection of bat viruses, including bat coronaviruses.
Lesley Stahl: I had seen that the World Health Organization team only spent 3 hours at the lab.
Jamie Metzl: While they were there they didn't demand access to the records and samples and key personnel.
That's because of the ground rules China set with the WHO, which has never had the authority to make demands or enforce international protocols.
Jamie Metzl: It was agreed first that China would have veto power over - over who even got to be on the mission. Secondly -
Lesley Stahl: And WHO agreed to that.
Jamie Metzl: WHO agreed to that. On top of that, the WHO agreed that in most instances China would do the primary investigation.
And then just share its findings -
Lesley Stahl: No.
Jamie Metzl: - with these international experts. So these international experts weren't allowed to do their own primary investigation.
Lesley Stahl: Wait. You're saying that China did the investigation and showed the results to the committee and that was it?
Jamie Metzl: Pretty much that -
Lesley Stahl: Whoa.
Metzl followed this up with a powerful comparison: Imagine if the US had let the Soviets run an international investigation into Chernobyl? Metzl added: despite evidence of past deadly lab leaks in China, Metzl said no one on the team was trained to identify signs of a lab leak.
Also, while the team went on a four-week mission, two of those weeks were spent holed up at this hotel in quarantine. Once out, they had some tense exchanges with their counterparts, a team of Chinese experts, over their refusal to provide raw data. If the virus originated in animals, the key unanswered question is: how did the virus travel the thousand miles from the bat caves in southern China to Wuhan?
Unsurprisingly, the WHO team thinks it has an alternative explanation for this that doesn't involve a lab leak. Infected animals were simply captured at farms near the bat caves, and shipped the stock to the Huanan market in Wuhan.
To argue the other side, 60 Minutes brought in Peter Daszak, a member of the WHO team. Daszak has close ties to Chinese labs, and has frequently appeared in the American press to argue against the leak narrative. But after several minutes of equivocating, Stahl forced Daszak to admit the incontrovertible truth: that the WHO has no real evidence to disprove the lab leak. Essentially, the team is just taking China's word for it, according to Daszak. What choice did they have?
What's more, Daszak said Chinese government "minders" were in the room with the investigators at all times.
Peter Daszak: We met with them. We said, "Do you audit the lab?" And they said, "Annually." "Did it you audit it after the outbreak?" "Yes." "Was anything found?" "No." "Do you test your staff?" "Yes." No one was--
Lesley Stahl: But you're just taking their word for it.
Peter Daszak: Well, what else can we do? There's a limit to what you can do and we went right up to that limit. We asked them tough questions. They weren't vetted in advance. And the answers they gave, we found to be believable-- correct and convincing.
Lesley Stahl: But weren't the Chinese engaged in a cover-up? They destroyed evidence, they punished scientists who were trying to give evidence on this very question of the origin.
Peter Daszak: Well, that wasn't our task to find out if China had covered up the origin issue.
Lesley Stahl: No, I know. I'm just saying doesn't that make you wonder?
Peter Daszak: We didn't see any evidence of any false reporting or cover-up in the work that we did in China.
Lesley Stahl: Were there Chinese government minders in the room every time you were asking questions?
Peter Daszak: There were Ministry of Foreign Affairs staff in the room throughout our stay. Absolutely. They were there to make sure everything went smoothly from the China side.
Lesley Stahl: Or to make sure they weren't telling you the whole truth and nothing but the truth--
Peter Daszak: You sit in a room with people who are scientists and you know what a scientific statement is and you know what a political statement is. We had no problem distinguishing between the two.
To be sure, Metzl acknowledged that the WHO theory is "plausible," and that his own theory has some holes ("it's incomplete" he says, adding that he would need more data from Beijing, which the CCP has been reluctant to turn over). But most importantly, Daszak has a conflict of interest, Metzl said, because of his long-time collaboration with the Wuhan lab.
"60 Minutes" also interviewed Matt Pottinger, the former Trump Administration national security official and head of Asia policy who has been one of the most vocal skeptics of the official narrative. Beijing didn't share the genetic sequences of the virus from the WIV. Pottinger also said Beijing had ordered scientists to destroy all viral samples.
Now, none of that is in itself evidence that the virus leaked from the lab. But it's a clear sign that a major cover-up has taken place. And the US media's unwillingness (until now) to reckon with that has been difficult to explain.
Government
Key Events This Week: Central Banks Galore Including A Historic Rate Hike By The BOJ
Key Events This Week: Central Banks Galore Including A Historic Rate Hike By The BOJ
According to DB’s Jim Reid, "this could be a landmark…
According to DB's Jim Reid, "this could be a landmark week in markets as the last global holdout on negative rates looks set to be removed as the BoJ likely hikes rates from -0.1% tomorrow." That will likely overshadow the FOMC that concludes on Wednesday that will have its own signalling intrigue given recent strong inflation. We also have the RBA meeting tomorrow and the SNB and BoE meetings on Thursday to close out a big week for global central bankers with many EM countries also deciding on policy. We’ll preview the main meetings in more depth below but outside of this we have the global flash PMIs on Thursday as well as inflation reports in Japan (Thursday) and the UK (Wednesday). US housing data also permeates through the week as you'll see in the full global day-by-day week ahead at the end as usual.
Let’s go into detail now, starting with the BoJ tomorrow. We’ve had negative base rates now for 8 years which if is the longest run ever seen for any country in the history of mankind. In fact it is doubtful that pre-historic man was as generous as to charge negative interest rates on lending money prior to this! It also might be one of the longest global runs without any interest rate hikes given the 17 year run that could end tomorrow. So, as Reid puts it, a landmark event.
DB's Chief Japan economist expects the central bank to revise its policy and abandon both NIRP and the multi-tiered current account structure and set rates on all excess reserves at 0.1%. He also sees both the yield curve control (YCC) and the inflation-overshooting commitment ending, replaced by a benchmark for the pace of the bank’s JGB purchasing activity. The house view forecast of 50bps of hikes through 2025 is more hawkish than the market but risks are still tilted to the upside. On Friday, the Japan Trade Union Confederation (Rengo) announced the first tally of the results of this year's shunto spring wage negotiation. The wage increase rate, including the seniority-based wage hike, is 5.28%, which was significantly higher than expected. This year will probably see the highest wage settlements since 1991 which given Japan’s recent history is an incredible turnaround. This wage data news has firmed up expectations for tomorrow.
With regards to the FOMC which concludes on Wednesday, DB economists expect only minor revisions to the meeting statement that saw an overhaul last meeting. With regards to the SEP, the growth and unemployment forecasts are unlikely to change but the 2024 inflation forecasts potentially could; elsewhere, expect the Fed to revise up their 2024 core PCE inflation forecast by a tenth to 2.5%, although they see meaningful risks that it gets revised up even higher to 2.6%. In our economists' view, a 2.5% core PCE reading would allow just enough wiggle room to keep the 2024 fed funds rate at 4.6% (75bps of cuts). However, if core PCE inflation were revised up to 2.6%, it would likely entail the Fed moving their base case back to 50bps of cuts, as this would essentially reflect the same forecasts as the September 2023 SEP.
Beyond 2024, DB expect officials to build in less policy easing due to a higher r-star. If two of the eight officials currently at 2.5% move up by 25bps, then the long-run median forecast would edge up to 2.6%. This could be justified by a one-tenth upgrade to the long-run growth forecast. After all this information is released the presser from Powell will of course be heavily scrutinised, especially on how Powell sees recent inflation data. Powell should also provide an update on discussions around QT but it is unlikely they are ready yet to release updated guidance.
One additional global highlight this week might be a big fall in UK inflation on Wednesday, suggesting that headline CPI will slow to 3.4% (vs 4% in January) and core to 4.5% (5.1%). Elsewhere there is plenty of ECB speaker appearances including President Lagarde on Wednesday. They are all highlighted in the day-by-day guide at the end.
Courtesy of DB, here is a day-by-day calendar of events
Monday March 18
- Data: US March New York Fed services business activity, NAHB housing market index, China February retail sales, industrial production, property investment, Eurozone January trade balance, Canada February raw materials, industrial product price index, existing home sales
Tuesday March 19
- Data: US January total net TIC flows, February housing starts, building permits, Japan January capacity utilization, Germany and Eurozone March Zew survey, Eurozone Q4 labour costs, Canada February CPI
- Central banks: BoJ decision, ECB's Guindos speaks, RBA decision
- Auctions: US 20-yr Bond ($13bn, reopening)
Wednesday March 20
- Data: UK February CPI, PPI, RPI, January house price index, China 1-yr and 5-yr loan prime rates, Japan February trade balance, Italy January industrial production, Germany February PPI, Eurozone March consumer confidence, January construction output
- Central banks: Fed's decision, ECB's Lagarde, Lane, De Cos, Schnabel, Nagel and Holzmann speak, BoC summary of deliberations
- Earnings: Tencent, Micron
Thursday March 21
- Data: US, UK, Japan, Germany, France and Eurozone March PMIs, US March Philadelphia Fed business outlook, February leading index, existing home sales, Q4 current account balance, initial jobless claims, UK February public finances, Japan February national CPI, Italy January current account balance, France March manufacturing confidence, February retail sales, ECB January current account, EU27 February new car registrations
- Central banks: BoE decision, SNB decision
- Earnings: Nike, FedEx, Lululemon, BMW, Enel
- Auctions: US 10-yr TIPS ($16bn, reopening)
- Other: European Union summit, through March 22
Friday March 22
- Data: UK March GfK consumer confidence, February retail sales, Germany March Ifo survey, January import price index, Canada January retail sales
* * *
Finally, looking at just the US, Goldman notes that the key economic data releases this week are the Philadelphia Fed manufacturing index and existing home sales reports on Thursday. The March FOMC meeting is on Wednesday. The post-meeting statement will be released at 2:00 PM ET, followed by Chair Powell’s press conference at 2:30 PM. There are several speaking engagements from Fed officials this week, including Chair Powell, Vice Chair for Supervision Barr, and President Bostic.
Monday, March 18
- There are no major economic data releases scheduled.
Tuesday, March 19
- 08:30 AM Housing starts, February (GS +9.4%, consensus +7.4%, last -14.8%); Building permits, February (consensus +2.0%, last -0.3%)
Wednesday, March 20
- 02:00 PM FOMC statement, March 19 – March 20 meeting: As discussed in our FOMC preview, we continue to expect the committee to target a first cut in June, but we now expect 3 cuts in 2024 in June, September, and December (vs. 4 previously) given the slightly higher inflation path. We continue to expect 4 cuts in 2025 and now expect 1 final cut in 2026 to an unchanged terminal rate forecast of 3.25-3.5%. The main risk to our expectation is that FOMC participants might be more concerned about the recent inflation data and less convinced that inflation will resume its earlier soft trend. In that case, they might bump up their 2024 core PCE inflation forecast to 2.5% and show a 2-cut median.
Thursday, March 21
- 08:30 AM Current account balance, Q4 (consensus -$209.5bn, last -$200.3bn)
- 08:30 AM Philadelphia Fed manufacturing index, March (GS 3.2, consensus -1.3, last 5.2): We estimate that the Philadelphia Fed manufacturing index fell 2pt to 3.2 in March. While the measure is elevated relative to other surveys, we expect a boost from the rebound in foreign manufacturing activity and the pickup in US production and freight activity.
- 08:30 AM Initial jobless claims, week ended March 16 (GS 210k, consensus 215k, last 209k): Continuing jobless claims, week ended March 9 (consensus 1,815k, last 1,811k)
- 09:45 AM S&P Global US manufacturing PMI, March preliminary (consensus 51.8, last 52.2): S&P Global US services PMI, March preliminary (consensus 52.0, last 52.3)
- 10:00 AM Existing home sales, February (GS +1.2%, consensus -1.6%, last +3.1%)
- 02:00 PM Federal Reserve Vice Chair for Supervision Barr speaks: Federal Reserve Vice Chair Michael for Supervision Barr will participate in a fireside chat in Ann Arbor, MI with students and faculty. A moderated Q&A is expected. On February 14, Barr said the Fed is “confident we are on a path to 2% inflation,” but the recent report showing prices rose faster than anticipated in January “is a reminder that the path back to 2% inflation may be a bumpy one.” Barr also noted that “we need to see continued good data before we can begin the process of reducing the federal funds rate.”
Friday, March 22
- 09:00 AM Fed Reserve Chair Powell speaks: The Federal Reserve Board will host a Fed Listens event in Washington D.C. on “Transitioning to the Post-Pandemic Economy.” Chair Powell will deliver opening remarks. Vice Chair Phillip Jefferson and Fed Governor Michelle Bowman will moderate conversations with leaders from various organizations. On March 6, Chair Powell noted in his congressional testimony that if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.
- 12:00 PM Federal Reserve Vice Chair for Supervision Barr speaks: Federal Reserve Vice Chair for Supervision Michael Barr will participate in a virtual event on “International Economic and Monetary Design.” A moderated Q&A is expected.
- 04:00 PM Atlanta Fed President Bostic (FOMC voter) speaks: Atlanta Fed President Raphael Bostic will participate in a moderated conversation at the 2024 Household Finance Conference in Atlanta. On March 4, Bostic said, “I need to see more progress to feel fully confident that inflation is on a sure path to averaging 2% over time.” Bostic also noted, “I expect the first interest rate cut, which I have penciled in for the third quarter, will be followed by a pause in the following meeting.”
Source: DB, Goldman, BofA
Government
Key Events This Week: Central Banks Galore Including A Historic Rate Hike By The BOJ
Key Events This Week: Central Banks Galore Including A Historic Rate Hike By The BOJ
According to DB’s Jim Reid, "this could be a landmark…
According to DB's Jim Reid, "this could be a landmark week in markets as the last global holdout on negative rates looks set to be removed as the BoJ likely hikes rates from -0.1% tomorrow." That will likely overshadow the FOMC that concludes on Wednesday that will have its own signalling intrigue given recent strong inflation. We also have the RBA meeting tomorrow and the SNB and BoE meetings on Thursday to close out a big week for global central bankers with many EM countries also deciding on policy. We’ll preview the main meetings in more depth below but outside of this we have the global flash PMIs on Thursday as well as inflation reports in Japan (Thursday) and the UK (Wednesday). US housing data also permeates through the week as you'll see in the full global day-by-day week ahead at the end as usual.
Let’s go into detail now, starting with the BoJ tomorrow. We’ve had negative base rates now for 8 years which if is the longest run ever seen for any country in the history of mankind. In fact it is doubtful that pre-historic man was as generous as to charge negative interest rates on lending money prior to this! It also might be one of the longest global runs without any interest rate hikes given the 17 year run that could end tomorrow. So, as Reid puts it, a landmark event.
DB's Chief Japan economist expects the central bank to revise its policy and abandon both NIRP and the multi-tiered current account structure and set rates on all excess reserves at 0.1%. He also sees both the yield curve control (YCC) and the inflation-overshooting commitment ending, replaced by a benchmark for the pace of the bank’s JGB purchasing activity. The house view forecast of 50bps of hikes through 2025 is more hawkish than the market but risks are still tilted to the upside. On Friday, the Japan Trade Union Confederation (Rengo) announced the first tally of the results of this year's shunto spring wage negotiation. The wage increase rate, including the seniority-based wage hike, is 5.28%, which was significantly higher than expected. This year will probably see the highest wage settlements since 1991 which given Japan’s recent history is an incredible turnaround. This wage data news has firmed up expectations for tomorrow.
With regards to the FOMC which concludes on Wednesday, DB economists expect only minor revisions to the meeting statement that saw an overhaul last meeting. With regards to the SEP, the growth and unemployment forecasts are unlikely to change but the 2024 inflation forecasts potentially could; elsewhere, expect the Fed to revise up their 2024 core PCE inflation forecast by a tenth to 2.5%, although they see meaningful risks that it gets revised up even higher to 2.6%. In our economists' view, a 2.5% core PCE reading would allow just enough wiggle room to keep the 2024 fed funds rate at 4.6% (75bps of cuts). However, if core PCE inflation were revised up to 2.6%, it would likely entail the Fed moving their base case back to 50bps of cuts, as this would essentially reflect the same forecasts as the September 2023 SEP.
Beyond 2024, DB expect officials to build in less policy easing due to a higher r-star. If two of the eight officials currently at 2.5% move up by 25bps, then the long-run median forecast would edge up to 2.6%. This could be justified by a one-tenth upgrade to the long-run growth forecast. After all this information is released the presser from Powell will of course be heavily scrutinised, especially on how Powell sees recent inflation data. Powell should also provide an update on discussions around QT but it is unlikely they are ready yet to release updated guidance.
One additional global highlight this week might be a big fall in UK inflation on Wednesday, suggesting that headline CPI will slow to 3.4% (vs 4% in January) and core to 4.5% (5.1%). Elsewhere there is plenty of ECB speaker appearances including President Lagarde on Wednesday. They are all highlighted in the day-by-day guide at the end.
Courtesy of DB, here is a day-by-day calendar of events
Monday March 18
- Data: US March New York Fed services business activity, NAHB housing market index, China February retail sales, industrial production, property investment, Eurozone January trade balance, Canada February raw materials, industrial product price index, existing home sales
Tuesday March 19
- Data: US January total net TIC flows, February housing starts, building permits, Japan January capacity utilization, Germany and Eurozone March Zew survey, Eurozone Q4 labour costs, Canada February CPI
- Central banks: BoJ decision, ECB's Guindos speaks, RBA decision
- Auctions: US 20-yr Bond ($13bn, reopening)
Wednesday March 20
- Data: UK February CPI, PPI, RPI, January house price index, China 1-yr and 5-yr loan prime rates, Japan February trade balance, Italy January industrial production, Germany February PPI, Eurozone March consumer confidence, January construction output
- Central banks: Fed's decision, ECB's Lagarde, Lane, De Cos, Schnabel, Nagel and Holzmann speak, BoC summary of deliberations
- Earnings: Tencent, Micron
Thursday March 21
- Data: US, UK, Japan, Germany, France and Eurozone March PMIs, US March Philadelphia Fed business outlook, February leading index, existing home sales, Q4 current account balance, initial jobless claims, UK February public finances, Japan February national CPI, Italy January current account balance, France March manufacturing confidence, February retail sales, ECB January current account, EU27 February new car registrations
- Central banks: BoE decision, SNB decision
- Earnings: Nike, FedEx, Lululemon, BMW, Enel
- Auctions: US 10-yr TIPS ($16bn, reopening)
- Other: European Union summit, through March 22
Friday March 22
- Data: UK March GfK consumer confidence, February retail sales, Germany March Ifo survey, January import price index, Canada January retail sales
* * *
Finally, looking at just the US, Goldman notes that the key economic data releases this week are the Philadelphia Fed manufacturing index and existing home sales reports on Thursday. The March FOMC meeting is on Wednesday. The post-meeting statement will be released at 2:00 PM ET, followed by Chair Powell’s press conference at 2:30 PM. There are several speaking engagements from Fed officials this week, including Chair Powell, Vice Chair for Supervision Barr, and President Bostic.
Monday, March 18
- There are no major economic data releases scheduled.
Tuesday, March 19
- 08:30 AM Housing starts, February (GS +9.4%, consensus +7.4%, last -14.8%); Building permits, February (consensus +2.0%, last -0.3%)
Wednesday, March 20
- 02:00 PM FOMC statement, March 19 – March 20 meeting: As discussed in our FOMC preview, we continue to expect the committee to target a first cut in June, but we now expect 3 cuts in 2024 in June, September, and December (vs. 4 previously) given the slightly higher inflation path. We continue to expect 4 cuts in 2025 and now expect 1 final cut in 2026 to an unchanged terminal rate forecast of 3.25-3.5%. The main risk to our expectation is that FOMC participants might be more concerned about the recent inflation data and less convinced that inflation will resume its earlier soft trend. In that case, they might bump up their 2024 core PCE inflation forecast to 2.5% and show a 2-cut median.
Thursday, March 21
- 08:30 AM Current account balance, Q4 (consensus -$209.5bn, last -$200.3bn)
- 08:30 AM Philadelphia Fed manufacturing index, March (GS 3.2, consensus -1.3, last 5.2): We estimate that the Philadelphia Fed manufacturing index fell 2pt to 3.2 in March. While the measure is elevated relative to other surveys, we expect a boost from the rebound in foreign manufacturing activity and the pickup in US production and freight activity.
- 08:30 AM Initial jobless claims, week ended March 16 (GS 210k, consensus 215k, last 209k): Continuing jobless claims, week ended March 9 (consensus 1,815k, last 1,811k)
- 09:45 AM S&P Global US manufacturing PMI, March preliminary (consensus 51.8, last 52.2): S&P Global US services PMI, March preliminary (consensus 52.0, last 52.3)
- 10:00 AM Existing home sales, February (GS +1.2%, consensus -1.6%, last +3.1%)
- 02:00 PM Federal Reserve Vice Chair for Supervision Barr speaks: Federal Reserve Vice Chair Michael for Supervision Barr will participate in a fireside chat in Ann Arbor, MI with students and faculty. A moderated Q&A is expected. On February 14, Barr said the Fed is “confident we are on a path to 2% inflation,” but the recent report showing prices rose faster than anticipated in January “is a reminder that the path back to 2% inflation may be a bumpy one.” Barr also noted that “we need to see continued good data before we can begin the process of reducing the federal funds rate.”
Friday, March 22
- 09:00 AM Fed Reserve Chair Powell speaks: The Federal Reserve Board will host a Fed Listens event in Washington D.C. on “Transitioning to the Post-Pandemic Economy.” Chair Powell will deliver opening remarks. Vice Chair Phillip Jefferson and Fed Governor Michelle Bowman will moderate conversations with leaders from various organizations. On March 6, Chair Powell noted in his congressional testimony that if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.
- 12:00 PM Federal Reserve Vice Chair for Supervision Barr speaks: Federal Reserve Vice Chair for Supervision Michael Barr will participate in a virtual event on “International Economic and Monetary Design.” A moderated Q&A is expected.
- 04:00 PM Atlanta Fed President Bostic (FOMC voter) speaks: Atlanta Fed President Raphael Bostic will participate in a moderated conversation at the 2024 Household Finance Conference in Atlanta. On March 4, Bostic said, “I need to see more progress to feel fully confident that inflation is on a sure path to averaging 2% over time.” Bostic also noted, “I expect the first interest rate cut, which I have penciled in for the third quarter, will be followed by a pause in the following meeting.”
Source: DB, Goldman, BofA
International
AI vs. elections: 4 essential reads about the threat of high-tech deception in politics
Using disinformation to sway elections is nothing new. Powerful new AI tools, however, threaten to give the deceptions unprecedented reach.
It’s official. Joe Biden and Donald Trump have secured the necessary delegates to be their parties’ nominees for president in the 2024 election. Barring unforeseen events, the two will be formally nominated at the party conventions this summer and face off at the ballot box on Nov. 5.
It’s a safe bet that, as in recent elections, this one will play out largely online and feature a potent blend of news and disinformation delivered over social media. New this year are powerful generative artificial intelligence tools such as ChatGPT and Sora that make it easier to “flood the zone” with propaganda and disinformation and produce convincing deepfakes: words coming from the mouths of politicians that they did not actually say and events replaying before our eyes that did not actually happen.
The result is an increased likelihood of voters being deceived and, perhaps as worrisome, a growing sense that you can’t trust anything you see online. Trump is already taking advantage of the so-called liar’s dividend, the opportunity to discount your actual words and deeds as deepfakes. Trump implied on his Truth Social platform on March 12, 2024, that real videos of him shown by Democratic House members were produced or altered using artificial intelligence.
The Conversation has been covering the latest developments in artificial intelligence that have the potential to undermine democracy. The following is a roundup of some of those articles from our archive.
1. Fake events
The ability to use AI to make convincing fakes is particularly troublesome for producing false evidence of events that never happened. Rochester Institute of Technology computer security researcher Christopher Schwartz has dubbed these situation deepfakes.
“The basic idea and technology of a situation deepfake are the same as with any other deepfake, but with a bolder ambition: to manipulate a real event or invent one from thin air,” he wrote.
Situation deepfakes could be used to boost or undermine a candidate or suppress voter turnout. If you encounter reports on social media of events that are surprising or extraordinary, try to learn more about them from reliable sources, such as fact-checked news reports, peer-reviewed academic articles or interviews with credentialed experts, Schwartz said. Also, recognize that deepfakes can take advantage of what you are inclined to believe.
2. Russia, China and Iran take aim
From the question of what AI-generated disinformation can do follows the question of who has been wielding it. Today’s AI tools put the capacity to produce disinformation in reach for most people, but of particular concern are nations that are adversaries of the United States and other democracies. In particular, Russia, China and Iran have extensive experience with disinformation campaigns and technology.
“There’s a lot more to running a disinformation campaign than generating content,” wrote security expert and Harvard Kennedy School lecturer Bruce Schneier. “The hard part is distribution. A propagandist needs a series of fake accounts on which to post, and others to boost it into the mainstream where it can go viral.”
Russia and China have a history of testing disinformation campaigns on smaller countries, according to Schneier. “Countering new disinformation campaigns requires being able to recognize them, and recognizing them requires looking for and cataloging them now,” he wrote.
3. Healthy skepticism
But it doesn’t require the resources of shadowy intelligence services in powerful nations to make headlines, as the New Hampshire fake Biden robocall produced and disseminated by two individuals and aimed at dissuading some voters illustrates. That episode prompted the Federal Communications Commission to ban robocalls that use voices generated by artificial intelligence.
AI-powered disinformation campaigns are difficult to counter because they can be delivered over different channels, including robocalls, social media, email, text message and websites, which complicates the digital forensics of tracking down the sources of the disinformation, wrote Joan Donovan, a media and disinformation scholar at Boston University.
“In many ways, AI-enhanced disinformation such as the New Hampshire robocall poses the same problems as every other form of disinformation,” Donovan wrote. “People who use AI to disrupt elections are likely to do what they can to hide their tracks, which is why it’s necessary for the public to remain skeptical about claims that do not come from verified sources, such as local TV news or social media accounts of reputable news organizations.”
4. A new kind of political machine
AI-powered disinformation campaigns are also difficult to counter because they can include bots – automated social media accounts that pose as real people – and can include online interactions tailored to individuals, potentially over the course of an election and potentially with millions of people.
Harvard political scientist Archon Fung and legal scholar Lawrence Lessig described these capabilities and laid out a hypothetical scenario of national political campaigns wielding these powerful tools.
Attempts to block these machines could run afoul of the free speech protections of the First Amendment, according to Fung and Lessig. “One constitutionally safer, if smaller, step, already adopted in part by European internet regulators and in California, is to prohibit bots from passing themselves off as people,” they wrote. “For example, regulation might require that campaign messages come with disclaimers when the content they contain is generated by machines rather than humans.”
Read more: How AI could take over elections – and undermine democracy
This story is a roundup of articles from The Conversation’s archives.
This article is part of Disinformation 2024: a series examining the science, technology and politics of deception in elections.
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