Former Senior White House Policy Advisor on Artificial Intelligence Sriram Krishnan stated that the White House will not establish a centralized AI licensing body similar to the Food and Drug Administration. Krishnan emphasized that the administration opposes burdensome, bureaucratic red tape and is not interested in picking winners and losers in the technology sector. He asserted that creating a centralized agency to license AI models would put "sand in the gears" of the industry, requiring legal intervention before model releases. "That is never, never going to happen under President Trump," Krishnan told the Financial Times.

Industry Backlash and Messaging

Krishnan attributed the growing backlash against artificial intelligence to the industry's own messaging rather than government policy. He noted that AI labs have done a "terrible job" explaining the benefits of the technology, arguing that their focus on dystopian narratives, including job losses and existential risks, has created public wariness. This sentiment follows local opposition to at least 75 U.S. data center projects worth approximately $130 billion in the first three months of 2026. Billionaire investor Mark Cuban echoed this view, suggesting that resistance to data centers serves as a proxy for broader concerns regarding wealth concentration associated with AI.

Regulatory Approach and Oversight

Instead of formal regulation, Krishnan pointed to a recent executive order establishing a voluntary framework that grants the government 30 days to review a model prior to release. For the long term, he advocates for shifting oversight to an industry-run "clearinghouse" that collaborates with intelligence and defense officials. He warned that delaying AI tools for weeks would likely harm American innovation and argued that excessive regulation could allow Chinese companies to overtake U.S. AI labs.

Export Controls and Leadership

Krishnan also addressed the use of export controls to pause Anthropic's Mythos model after Amazon flagged a security flaw. He supported the decision, taken "very, very reluctantly," and denied it targeted Anthropic due to its dispute with the Pentagon. These comments align with previous assertions that the United States must maintain leadership in cryptocurrency and artificial intelligence to secure economic and national security interests. Krishnan's departure from the White House follows the exit of AI czar David Sacks from his formal role, signaling a shift in Silicon Valley's direct presence within the administration.

President Donald Trump has criticized the Federal Reserve's approach to interest rates, arguing that the central bank is stifling economic growth with restrictive policies. In an interview with CNBC's Joe Kernen, Trump advocated for a target GDP growth rate of 12% to 13%, significantly higher than the current 4% ceiling, and expressed concern that positive economic indicators often trigger stock market declines due to an excessive focus on inflation.

Trump suggested that newly appointed Fed Chairman Kevin Warsh should be granted greater flexibility in decision-making regarding rate cuts. He criticized the current board's potential hostility and inclination towards incorrect decisions, stating that the U.S. should not limit itself to modest growth figures when other nations like India and Japan achieve higher rates. "We’re not allowed to go up. If we go up, they want to kill it. There’s no reason we should stop at 4%. We should be at 12% and 13% GDP," said Trump.

The Federal Reserve unanimously voted to keep the federal funds rate unchanged at 3.50%–3.75%, citing inflation levels that remain above its 2% target. The Fed attributed the persistent inflation partly to a recent spike in global energy prices. Trump had previously expressed disbelief at Warsh's decision to hold rates steady, arguing that such moves keep the country down and are unusual.

Treasury Secretary Scott Bessent defended the administration's aggressive trade policies and unveiled an economic blueprint aimed at achieving 3% GDP growth. The plan includes higher energy production and a 3% deficit-to-GDP ratio, which Bessent claims will reduce debt relative to the economy while neutralizing "structural inflation."

Despite the administration's optimistic targets, economist Mark Zandi warned of underlying risks in the U.S. economy. While the first quarter saw 2.1% growth driven by AI-related investment and corporate tax cuts, Zandi noted that consumer finances are deteriorating. He cited falling real disposable income and a historically low savings rate as key concerns, cautioning that weakening household finances pose a significant risk given that consumers account for more than two-thirds of U.S. GDP.

Key Economic Indicators