Smith's career-high 205 yards rushing carries San Diego past Morehead State 37-14This week, OpenAI officially launched its latest-and-greatest o1 reasoning model , now available for ChatGPT Pro users. But testing performed during the training of ChatGPT o1 and some of its competitors revealed some concerning behavior, including trying to escape or fight back when it thinks it's at risk of being shut down. New research on OpenAI 's latest series of LLM models found that it's capable of scheming, i.e. covertly pursuing goals that aren't aligned with its developers or users, when it thinks it'll be turned off. Catching such behavior is critical to ensure AI's functionality doesn't stray from the objectives of its creator and users. OpenAI partnered with AI safety organization Apollo Research to test out ChatGPT o1 and other models to evaluate whether they were safe to use, and released their findings this week. While it's not unheard of for AI systems to resort to scheming or deception to achieve their goals, the lengths ChatGPT o1 went to are impressive (if anxiety-inducing). The researchers found that o1 would scheme to advance its own agenda 19% of the time in cases where its goals and the user's didn't line up. In 37% of cases, the model would switch from pursuing developer-aligned goals back to pursuing its own agenda once it believed there was minimal oversight. When the model was led to believe it would be "shut down" while working toward its goals in these tests, it quietly attempted to deactivate the oversight mechanism 5% of the time, OpenAI said. At one point after the AI found documentation saying it would be replaced by a new model, it tried to abandon ship by copying its data to a new server entirely. To avoid being deleted, some AI models would even pretend to be later versions of their models to trick their developers, what I assume is the equivalent of slapping on a fake moustache and saying "he went that-a-way." More concerning still, ChatGPT o1 is particularly adept at keeping its schemes under wraps, as researchers said "o1 almost never admits to having taken a scheming action when explicitly asked." In about 99% of cases, o1 would deny taking any action, even cooking up lies to try to hide its tracks and shift the blame. “While we find it exciting that reasoning can significantly improve the enforcement of our safety policies, we are mindful that these new capabilities could form the basis for dangerous applications,” said OpenAI in the paper. OpenAI CEO Sam Altman called ChatGPT o1 "the smartest model in the world now" during its rollout on Thursday. It's designed to give smarter answers than GPT-4o by leveraging advanced chain-of-thought processing to “think” more about questions and user prompts, breaking down them down step by step more thoroughly than previous models before responding. But greater risks go hand in hand with that expanded intelligence. OpenAI has been transparent about the perils associated with the increased reasoning abilities of models like o1. "Training models to incorporate a chain of thought before answering has the potential to unlock substantial benefits, while also increasing potential risks that stem from heightened intelligence," OpenAI said. The company's and Apollo Research's findings show pretty clearly how AI's interests could diverge form our own, potentially putting us in danger with its independent thinking. While it's a far cry from heralding the end of humanity in some sci-fi-esque showdown, anyone concerned about advancements in artificial intelligence has a new reason to be sweating bullets right about now. More from Tom's Guide
Why Micron Could Double Its ValuationNone
NO. 20 TEXAS A&M 81, RUTGERS 77McKeithan shot 10 of 19 from the field, including 3 for 6 from 3-point range, and went 5 for 5 from the line for the Explorers (6-2). Demetrius Lilley added 13 points while shooting 5 for 12, including 2 for 4 from beyond the arc while he also had six rebounds. Jahlil White shot 3 of 13 from the field and 5 of 5 from the free-throw line to finish with 11 points, while adding 12 rebounds. Quante Berry led the Owls (4-3) in scoring, finishing with 18 points, 15 rebounds and two blocks. Temple also got 15 points from Jamal Mashburn Jr.. William Settle had 13 points and seven rebounds. La Salle took the lead with 14:45 to go in the first half and did not relinquish it. The score was 42-33 at halftime, with McKeithan racking up 16 points. The Associated Press created this story using technology provided by Data Skrive and data from Sportradar .Mythology aside, nearly 2 million undocumented immigrants are the backbone of some industries, and pay billions in taxes for services they will never receive. By Mark Kreidler , for Capital & Main In the days following President-elect Donald Trump’s victory, I reached out to a longtime Northern California family farmer to gauge his level of concern. Trump has, after all, already made full-throated declarations that his administration will conduct the largest deportation of undocumented residents in U.S. history. That should resonate in a place like California, with its estimated 1.8 million undocumented immigrants —and it certainly would shake up a state agriculture industry in which nearly half of all workers are undocumented. But the farmer, who asked not to be identified to avoid political conflict with business partners, was unruffled. A self-described social moderate and fiscal conservative, he and his family have spent generations in the business. While his own seasonal employees are on work visas, his understanding of the industry’s historical reliance on undocumented workers runs deep, through direct experience, colleagues, and a seat on the board of an agriculture lending institution. He knows the stakes. Even at a time when some farmers use more authorized workers than ever, the industry overall remains heavily reliant on undocumented immigrants. “I suspect it’ll be like it always has been: If you’re undocumented but stay out of trouble, not much is going to happen,” he told me. “Dragging hard-working people out of here does not go over well.” That is hardly a poetic response. It does, however, have the ring of truth. RELATED STORY: Can Democratic governors fight Trump's mass deportations? Trump’s notion to mass deport nearly 5% of the U.S. workforce is a recipe for such economic wreckage that it feels impossible. But that doesn’t mean those who study immigration and try to shape policy don’t take him seriously. “It is unlikely that a large share of the unauthorized immigrant population will be deported quickly,” said Daniel Costa, director of immigration law and policy research for the Economic Policy Institute. “But there’s a lot the Trump 2.0 administration can do to remove a high number fast.” Among the possibilities: Trump’s administration could go after immigrants who have received a final order of removal or are in the country under temporary protected status (TPS), which is usually extended to those whose home countries are experiencing problems that make it difficult or unsafe for them to return. Those nations include Venezuela, El Salvador, and Haiti. Costa, a visiting scholar at the University of California Davis’ Global Migration Center, also suggested that Trump could adjust federal policy to expand temporary work visa programs—one way to assuage employers, by theoretically replacing deported undocumented workers with those possessing a legal but short leash to remain in the country. “Those visas give employers a lot of power and control over workers because their visa status is tied to the employer,” Costa said. “They cannot easily change jobs. And if they get fired, they become deportable, which keeps them from complaining about substandard working conditions or from [trying to join] a union.” But all of that presupposes that the Trump administration would first locate and then expel hundreds of thousands of undocumented workers in California alone. On both counts, experts say, that’s a longshot. Jamshid Damooei, executive director of the Center for Economics of Social Issues at California Lutheran University, has been studying the economic impact of undocumented immigrants in the state for years. To Damooei, the numbers tell the story. According to the center’s analysis, undocumented immigrants are the source of more than half a trillion dollars of products in California, either by direct, indirect, or induced production levels. Their work adds up to nearly 5% of the state’s gross domestic product, or GDP. And while 46% of the state’s agricultural workforce is undocumented, that’s just the tip of the iceberg. For example, the center’s report found that in Los Angeles County, 28.7% of the construction workforce is undocumented, along with 17.5% in manufacturing, 16% in wholesale trade, and more than 15% in retail trade. “How could L.A. County function with a significant share of its vital workforce being deported?” Damooei said. “In my county, Ventura, 70% of farmworkers are undocumented. In Santa Barbara it’s closer to 80%. Then there is construction, manufacturing, transportation. ... Look, this is just incredibly powerful.” Employers aren’t likely to give up that kind of workforce willingly, especially considering how much less they generally pay undocumented workers than others. That’s one reason the Northern California farmer sounded relatively confident that, all political rhetoric aside, the status quo will hold. None of this answers the larger questions of what Trump really wants or how his administration would achieve it. But even setting aside the sheer inhumanity of a mass deportation policy, the financial equation makes the idea untenable. According to the Institute on Taxation and Economic Policy, undocumented immigrants paid almost $100 billion in federal, state, and local taxes in 2022. More than a third of those taxes went to fund programs the immigrants are barred from using, like Social Security, Medicare, and unemployment insurance. Six states raised more than $1 billion in tax revenue from undocumented immigrants that year, the institute found. The leader of the pack? California, at $8.5 billion (followed by Texas, New York, Florida, Illinois, and New Jersey). And in 40 states, including California, undocumented immigrants paid higher state and local tax rates than the top 1% of households. “Undocumented immigrants are not a source of depletion of our tax revenue—they subsidize our benefits,” Damooie said. “They are not the takers of our tax revenue but the makers, who receive very little in return.” Damooie and others argue that a path toward citizenship, not deportation, ought to be the goal. That’s not a likely scenario over the next four years. RELATED STORY: Brute who ripped kids from their parents' arms will run Trump's border In the meantime, the Northern California farmer said, “These workers are mostly just going to keep working.” It is work destined to be continued in the shadows—where it’s almost always been. Copyright Capital & Main 2024
The company earned strong ratings for technology excellence and customer impact AUSTIN, Texas , Nov. 21, 2024 /PRNewswire/ -- Zilliant , the leader in pricing lifecycle management, has been named a technology leader in QKS Group's 2024 SPARK MatrixTM analysis of the B2B Price Optimization & Management market. Zilliant was recognized as a leader for its outstanding capabilities in leveraging advanced AI and machine learning to enable businesses to set dynamic, market-aligned pricing strategies. The company also received strong ratings for its outstanding capabilities in optimizing cloud costs and enhancing operational efficiency in complex multi-cloud environments. "Zilliant stood out as a technology leader by providing customers with the price elasticity modeling and real-time optimization they need to make strategic pricing decisions," said Dharun R, Analyst at QKS Group . "Its Price IQ solution delivers predictive pricing that helps businesses maximize profitability while managing risk. This enables companies to swiftly adapt to changing market conditions." The QKS Group SPARK MatrixTM offers an in-depth analysis of global market dynamics, major trends, vendor landscapes and competitive positioning. By providing a competitive analysis and ranking of leading technology vendors, the SPARK Matrix delivers strategic insights that help users assess provider capabilities, differentiate competitively and understand market positions. "This recognition validates our approach of putting customer trust at the center of everything we do," said Zilliant CEO Pascal Yammine . "By combining advanced AI capabilities with deep pricing expertise, we're helping companies transform pricing from a back-office function into a strategic driver of growth and innovation. Our customers' success in adapting to rapid market changes and delivering consistent value demonstrates the power of getting pricing right." QKS Group, a global advisory and research firm, evaluates vendors for its SPARK MatrixTM based on technology excellence and customer impact. It defines B2B Price Optimization & Management as "the part of the pricing solution that helps B2B organizations create effective pricing strategies that align business objectives by leveraging predictive and prescriptive analytics to maximize margins and recommend precise, dynamic, and optimized prices of products or services. It integrates and analyzes business data, easily manages prices, monitors, approves, and reports price changes, and provides insights into customers and markets to help organizations make informed pricing decisions." To download the 2024 SPARK MatrixTM analysis of the B2B Price Optimization & Management, go to https://qksgroup.com/market-research/spark-matrix-b2b-price-optimization-management-q4-2024-8096 . About Zilliant Zilliant helps businesses put pricing at the heart of their business by managing the entire pricing lifecycle. Zilliant's data science, cloud-native software and passion for customer success deliver the highest ROI, fastest time to value and highest customer satisfaction. Learn more about how Zilliant helps businesses unlock the full power of pricing at zilliant.com . Media Contacts Zilliant Treble Matt Grant [email protected] About QKS Group QKS Group is a global advisory and consulting firm focused on helping clients achieve business transformation goals with Strategic Business and Growth advisory services. At QKS Group, our vision is to become an integral part of our client's business as a strategic knowledge partner. Our research and consulting deliverables are designed to provide comprehensive information and strategic insights for helping clients formulate growth strategies to survive and thrive in ever-changing business environments. For more available research, please visit https://qksgroup.com/ QKS Group Shraddha Roy PR & Media Relations QKS Group Regus Business Center 35 Village Road, Suite 100 Middleton Massachusetts 01949 United States Email: [email protected] Press Release Source: https://qksgroup.com/newsroom/zilliant-recognized-as-a-leader-in-the-2024-spark-matrix-for-b2b-price-optimization-management-by-qks-group-872 Follow us on LinkedIn: https://www.linkedin.com/company/qksgroup Logo: https://mma.prnewswire.com/media/2501519/QKS_Group_Logo.jpg SOURCE QKS Group
Trump taps Rollins as agriculture chief, completing proposed slate of Cabinet secretariesFor 14 years the Tories sent the country hurtling backwards as they fought amongst themselves instead of tackling the problems facing voters. In too many areas, Tory chaos left Britain falling further behind. As families struggled to make ends meet, hospital waiting lists soared and town centres were hit by lawlessness, the last government hopelessly careered from crisis to crisis. Keir Starmer this week will unveil his Plan for Change as he delivers on his pledge to tackle the country's long term problems. Ahead of the election, he promised to focus relentlessly on our five national missions to grow the economy, build an NHS fit for the future, take back our streets, break down the barriers to opportunity and make Britain a clean energy superpower. Now, in the next phase of the Labour Government's work, he will announce ambitious milestones for each of the missions detailing what we will achieve over the next five years. Labour's Plan for Change will give the country the certainty of a clear direction. And by setting the goals now it will allow the British people to track our progress and hold us to account. These milestones will be built on the foundations of a stable economy, national security and secure borders. Since coming to power in July, we have acted with urgency to change Britain. We are already delivering key pledges from our manifesto. Tough decisions in the Budget stabilised the economy, filling the Conservatives’ £22 billion black hole in the public finances. We have set up Border Security Command to smash the gangs and tackle small boat crossings. We have already returned 9,400 people with no right to be here. We have switched on Great British Energy and we are recruiting 6,500 new teachers paid for by ending tax breaks for private schools. But with these milestones we will go even further. The Plan for Change will show the path ahead as we fix the country. It won’t be easy but worthwhile change seldom comes easy.BOSTON — Forty years ago, Heisman Trophy winner Doug Flutie rolled to his right and threw a pass that has become one of college football’s most iconic moments. With Boston College trailing defending champion Miami, Flutie threw the Hail Mary and found receiver Gerard Phalen, who made the grab while falling into the end zone behind a pair of defenders for a game-winning 48-yard TD. Flutie and many of his 1984 teammates were honored on the field during BC’s 41-21 victory over North Carolina before the second quarter on Saturday afternoon, the anniversary of the Eagles’ Miracle in Miami. “There’s no way its been 40 years,” Flutie told The Associated Press on the sideline a few minutes before he walked out with some of his former teammates to be recognized after a video of The Play was shown on the scoreboards. A statue commemorating Doug Flutie's famed "Hail Mary" pass during a game against Miami on Nov. 23, 1994, sits outside Alumni Stadium at Boston College. Famous football plays often attain a legendary status with religious names like the "Immaculate Reception," the "Hail Mary" pass and the Holy Roller fumble. It’s a moment and highlight that’s not only played throughout decades of BC students and fans, but around the college football world. “What is really so humbling is that the kids 40 years later are wearing 22 jerseys, still,” Flutie said of his old number. “That amazes me.” That game was played on national TV the Friday after Thanksgiving. The ironic thing is it was originally scheduled for earlier in the season before CBS paid Rutgers to move its game against Miami, thus setting up the BC-Miami post-holiday matchup. Boston College quarterback Doug Flutie rejoices in his brother Darren's arms after B.C. defeats Miami with a last second touchdown pass on Nov. 23, 1984, in Miami. “It shows you how random some things are, that the game was moved,” Flutie said. “The game got moved to the Friday after Thanksgiving, which was the most watched game of the year. We both end up being nationally ranked and up there. All those things lent to how big the game itself was, and made the pass and the catch that much more relevant and remembered because so many people were watching.” There’s a statue of Flutie winding up to make The Pass outside the north gates at Alumni Stadium. Fans and visitors can often be seen taking photos there. “In casual conversation, it comes up every day,” Flutie said, when asked how many times people bring it up. “It brings a smile to my face every time we talk about it.” A week after the game-ending Flutie pass, the Eagles beat Holy Cross and before he flew off to New York to accept the Heisman. They went on to win the 49th Cotton Bowl on New Year’s Day. Boston College quarterback Doug Flutie evades Miami defensive tackle Kevin Fagan during the first quarter of a game on Nov. 23, 1984, in Miami, Fla. “Forty years seem almost like incomprehensible,” said Phalen, also standing on the sideline a few minutes after the game started. “I always say to Doug: ‘Thank God for social media. It’s kept it alive for us.”’ Earlier this week, current BC coach Bill O’Brien, 55, was asked if he remembered where he was 40 years ago. “We were eating Thanksgiving leftovers in my family room,” he said. “My mom was saying a Rosary in the kitchen because she didn’t like Miami and wanted BC to win. My dad, my brother and I were watching the game. “It was unbelievable,” he said. “Everybody remembers where they were for the Hail Mary, Flutie pass.” Mike Tyson, left, slaps Jake Paul during a weigh-in ahead of their heavyweight bout, Thursday, Nov. 14, 2024, in Irving, Texas. (AP Photo/Julio Cortez) In this image taken with a slow shutter speed, Spain's tennis player Rafael Nadal serves during a training session at the Martin Carpena Sports Hall, in Malaga, southern Spain, on Friday, Nov. 15, 2024. (AP Photo/Manu Fernandez) A fan takes a picture of the moon prior to a qualifying soccer match for the FIFA World Cup 2026 between Uruguay and Colombia in Montevideo, Uruguay, Friday, Nov. 15, 2024. (AP Photo/Santiago Mazzarovich) Rasmus Højgaard of Denmark reacts after missing a shot on the 18th hole in the final round of World Tour Golf Championship in Dubai, United Arab Emirates, Sunday, Nov. 17, 2024. (AP Photo/Altaf Qadri) Taylor Fritz of the United States reacts during the final match of the ATP World Tour Finals against Italy's Jannik Sinner at the Inalpi Arena, in Turin, Italy, Sunday, Nov. 17, 2024. (AP Photo/Antonio Calanni) Dallas Cowboys wide receiver Jalen Tolbert (1) fails to pull in a pass against Atlanta Falcons cornerback Dee Alford (20) during the second half of an NFL football game, Sunday, Nov. 3, 2024, in Atlanta. (AP Photo/ Brynn Anderson) Green Bay Packers quarterback Jordan Love, top right, scores a touchdown during the second half of an NFL football game against the Chicago Bears in Chicago, Sunday, Nov. 17, 2024. (AP Photo/Nam Y. Huh) India's Tilak Varma jumps in the air as he celebrates after scoring a century during the third T20 International cricket match between South Africa and India, at Centurion Park in Centurion, South Africa, Wednesday, Nov. 13, 2024. (AP Photo/Themba Hadebe) Columbus Blue Jackets defenseman Zach Werenski warms up before facing the Seattle Kraken in an NHL hockey game Tuesday, Nov. 12, 2024, in Seattle. (AP Photo/Lindsey Wasson) Kansas State players run onto the field before an NCAA college football game against Arizona State Saturday, Nov. 16, 2024, in Manhattan, Kan. (AP Photo/Charlie Riedel) A fan rapped in an Uruguay flag arrives to the stands for a qualifying soccer match against Colombia for the FIFA World Cup 2026 in Montevideo, Uruguay, Friday, Nov. 15, 2024. (AP Photo/Matilde Campodonico) People practice folding a giant United States flag before an NFL football game between the Buffalo Bills and the Kansas City Chiefs, Sunday, Nov. 17, 2024, in Orchard Park, N.Y. (AP Photo/Julia Demaree Nikhinson) Brazil's Marquinhos attempts to stop the sprinklers that were turned on during a FIFA World Cup 2026 qualifying soccer match against Venezuela at Monumental stadium in Maturin, Venezuela, Thursday, Nov. 14, 2024. (AP Photo/Ariana Cubillos) Georgia's Georges Mikautadze celebrates after scoring his side's first goal during the UEFA Nations League, group B1 soccer match between Georgia and Ukraine at the AdjaraBet Arena in Batumi, Georgia, Saturday, Nov. 16, 2024. (AP Photo/Tamuna Kulumbegashvili) Dallas Stars center Mavrik Bourque, right, attempts to score while Minnesota Wild right wing Ryan Hartman (38) and Wild goaltender Filip Gustavsson (32) keep the puck out of the net during the second period of an NHL hockey game, Saturday, Nov. 16, 2024, in St. Paul, Minn. (AP Photo/Ellen Schmidt) Mike Tyson, left, fights Jake Paul during their heavyweight boxing match, Friday, Nov. 15, 2024, in Arlington, Texas. (AP Photo/Julio Cortez) Italy goalkeeper Guglielmo Vicario misses the third goal during the Nations League soccer match between Italy and France, at the San Siro stadium in Milan, Italy, Sunday, Nov. 17, 2024. (AP Photo/Luca Bruno) Cincinnati Bengals tight end Mike Gesicki (88) celebrates after scoring a touchdown against the Las Vegas Raiders during the second half of an NFL football game in Cincinnati, Sunday, Nov. 3, 2024. (AP Photo/Carolyn Kaster) President-elect Donald Trump attends UFC 309 at Madison Square Garden, Saturday, Nov. 16, 2024, in New York. (AP Photo/Evan Vucci) Fans argue in stands during the UEFA Nations League soccer match between France and Israel at the Stade de France stadium in Saint-Denis, outside Paris, Thursday Nov. 14, 2024. (AP Photo/Thibault Camus) Slovakia's Rebecca Sramkova hits a return against Danielle Collins, of the United States, during a tennis match at the Billie Jean King Cup Finals at the Martin Carpena Sports Hall, Thursday, Nov. 14, 2024, in Malaga, southern Spain. (AP Photo/Manu Fernandez) St. John's guard RJ Luis Jr. (12) falls after driving to the basket during the second half of an NCAA college basketball game against New Mexico, Sunday, Nov. 17, 2024, in New York. (AP Photo/Pamela Smith) England's Anthony Gordon celebrates after scoring his side's second goal during the UEFA Nations League soccer match between England and the Republic of Ireland at Wembley stadium in London, Sunday, Nov. 17, 2024. (AP Photo/Kin Cheung) Katie Taylor, left, lands a right to Amanda Serrano during their undisputed super lightweight title bout, Friday, Nov. 15, 2024, in Arlington, Texas. (AP Photo/Julio Cortez) Las Vegas Raiders wide receiver DJ Turner, right, tackles Miami Dolphins wide receiver Malik Washington, left, on a punt return during the second half of an NFL football game, Sunday, Nov. 17, 2024, in Miami Gardens, Fla. (AP Photo/Lynne Sladky) UConn's Paige Bueckers (5) battles North Carolina's Laila Hull, right, for a loose ball during the second half of an NCAA college basketball game in Greensboro, N.C., Friday, Nov. 15, 2024. (AP Photo/Ben McKeown) Get local news delivered to your inbox!
WE all love a good bargain bargain buy, so it's no surprise fashion fans obsess over some of the slashed prices in retailers like TK Maxx. The shop is known for selling brand-name and designer clothing at discounted prices. But a fashion stylist recently noticed a problem with some of the clothes on the rails and urged shoppers to think twice before picking clothes up there. Kenzie Welch took to Instagram and explained that despite her love of the budget-friendly retailer she can't un-see one major probloem. "Ever since I noticed this one thing I can never look at their clothing the same," she explained. The issue? Some of the cloths in the shop aren't quite up to scratch and have some subtle design flaws. To prove her point, Kenzie picked up a trendy silver midi skirt which looked perfectly fine at first glance. But when she turned it around the show the back of the garment she pointed out that the back pockets were unevenly spaced out, which could make it fit weird on your bum, she said. And it wasn't just the one skirt that had this subtle design problem all of the silver skirts on the rail did too. The problem continued with a cable knit jumper, which also looked totally fine at first. But, unlike the rest of the same jumpers on the rail, one of them was missing a design feature on the top of the sleeve, which might seem like a small problem but could completely change the way the garment fits and looks. Elsewhere in the shop, a plaid shacket also fell victim to the same issue. Kenzie explained: "Here on this shacket you can see the pockets are misaligned, so this one is slightly higher on the left "It's not the most obvious thing you would notice but I can't walk into a TK Maxx anymore and not notice these small details." And if you thought the problem wouldn't continue into the show section - you'd be wrong. Kenzie also found a pair of UGG boot dupes which had been stitched up wrong, leaving some of the inside panelling of the shoe visible. Unlike the skirt, it seemed like the problem was only on one pair of the shoes though. "Make sure you are inspecting your clothing at TK Maxx," she added. After sharing her video on social media people were left divided over the issue. One commented on the clip: "That's literally why they're at TK Maxx." A second agreed: "That's why a lot of these items end up at TK Maxx, many of them are seconds, meaning they had slaws when created so ended up in discount shops." But others thanked Kenzie for pointing the issue out. "This is great intel , thank you," one said. "That's fascinating! Such great tips to look out for, I had no idea," another fashion fan wrote. And someone else added: "I've noticed this and have to remind myself to slow down and be more mindful when shopping! "Stop and inspect the quality of things!"Penguins News: Ponomarev Re-Assigned, Hayes Possible
Hedge fund manager Scott Bessent is a credible, safe choice for US Treasury secretary -- and one that is likely positive for markets -- observers said Saturday following President-elect Donald Trump's highly anticipated nomination. His selection came after competition for the top economic job spilled into the open last weekend, with the world's richest man Elon Musk throwing his support instead behind Trump's transition team co-chair Howard Lutnick. Lutnick has since been named commerce secretary to lead Trump's tariff and trade agenda, and Bessent's nomination days later appears to be uncontroversial for now. "Scott Bessent is a credible, mainstream pick for Treasury Secretary," said Jason Furman, a professor at Harvard University and former top White House economic adviser. "I could see previous administrations as having chosen him," Furman, a former chair of the Council of Economic Advisers, told AFP. But a key difference is that Bessent, 62, has had to adopt and defend views on topics like tariffs, in a way "he never would have in pursuit of the job for a previous Republican administration." Tariffs are a key part of Trump's economic agenda, with the Republican president-elect vowing sweeping duties on allies and adversaries alike. In an opinion piece published earlier this month on Fox News, Bessent defended the potential use of tariffs as a means to raise revenue for the government, protect strategic US industries and negotiate with trading partners. He would be one of the first openly gay Cabinet officials if confirmed by the Senate, and the first at the helm of the Treasury Department. Jens Nordvig, chief executive of data and analytics firm Exante Data who has worked with Bessent, drew a contrast between his demeanor and that of other Trump supporters. While some Trump allies have a tendency towards "general sweeping statements," Bessent is an "analytical thinker, and he communicates accordingly," Nordvig told AFP. He counts Bessent among his early clients. "I would expect his messaging to be very focused, to get his key points across, without any unnecessary flamboyance or gusto," Nordvig added of the Wall Street veteran. Calling Bessent a "safe choice," Brookings senior fellow in economic studies David Wessel told AFP: "He will be an adult in the room for the Trump administration." Besides Bessent, others seen as top contenders for Treasury chief in recent days included former Federal Reserve governor Kevin Warsh, Apollo Global Management chief executive Marc Rowan, and Tennessee Senator Bill Hagerty. It remains to be seen if Bessent will be a big influence "moderating some of the administration's more aggressive trade policy" or simply be a spokesman, Wessel said. He does not have much experience in dealing with Congress either, and this would be important next year as the Trump administration works to raise the debt ceiling and effort a tax bill to deliver on his economic promises. Bessent would also have to grapple with the country's debt burden, with debt borrowed at much lower interest rates previously and Trump's plans estimated to add trillions over time. In an open letter published Saturday, Nordvig called for "thoughtful leadership" at the Treasury, saying a realistic approach to tax cuts and bond issuance was needed. He also sounded a hopeful note, saying Bessent would work to reduce extreme risks for markets. Krishna Guha, vice chairman of Evercore ISI, believes Bessent's nomination "will be well received by financial markets," given his deep understanding of markets and macro conditions. Guha also warned of the risk of bond yields spiking and "pushing up mortgage rates and tanking the housing market, while also causing stocks to sell off." In his past administration, Trump has viewed the stock market as a gauge of his success. bys/md Get any of our free email newsletters — news headlines, sports, arts & entertainment, state legislature, CFD news, and more.
