Big Moves & Bold Bets

19th June 2025

The Fed held rates steady but flagged possible 2025 cuts amid tariff-driven inflation risks, Texas lawmakers urged Tesla to delay its robotaxi launch until new rules take effect , an EU court adviser backed a €4.1B antitrust fine against Google. Sam Altman says Meta is offering $100M bonuses to poach OpenAI talent.

Fed Holds Rates Steady, Flags Two Cuts in 2025 Amid Tariff-Driven Inflation Risks

The Federal Reserve left interest rates unchanged on Wednesday, maintaining a cautious stance as it monitors economic conditions. Policymakers still expect two rate cuts by the end of 2025, but Fed Chair Jerome Powell warned that those projections are highly dependent on how inflation evolves. He noted that while recent price data has been encouraging, the outlook is becoming more complex due to the Trump administration’s planned import tariffs.

Powell said these new tariffs could trigger a “meaningful” rise in inflation, as costs are passed down the supply chain from manufacturers and importers to consumers. “Someone has to pay for the tariffs,” he said, suggesting that much of the burden may ultimately fall on households. The Fed plans to wait and assess how much of this price pressure filters through before making any policy moves.

The central bank’s updated economic projections reflect a murkier picture: growth slowing to 1.4% in 2025, unemployment ticking up to 4.5%, and inflation remaining above target at 3%. While most Fed officials still see room for cuts next year, there’s growing division within the committee, with seven policymakers projecting no rate reductions at all. Powell acknowledged the uncertainty, saying this is “a very foggy time,” and stressed the importance of being guided by incoming data. CNN

Texas Lawmakers Urge Tesla to Delay Robotaxi Rollout Until New Rules Take Effect

A group of Democratic lawmakers from the Austin area is urging Tesla to hold off on its planned robotaxi launch until September, when Texas’s new autonomous vehicle regulations are set to kick in. In a letter sent Wednesday, the legislators said delaying the rollout would be “in the best interest of both public safety and building public trust” as the company moves forward with autonomous driving. CEO Elon Musk had previously floated the idea of a "tentative" launch as early as this Sunday.

If Tesla proceeds with the launch, the lawmakers are requesting detailed information on how the company plans to comply with the upcoming state law. The new legislation, passed last month but not yet signed by the governor, would require autonomous vehicle firms to obtain state authorization to operate and allow that authorization to be revoked if the vehicles pose a public risk. It would also mandate companies to share protocols for how first responders should handle AVs in emergencies.

Musk has made clear that Tesla’s future hinges on its self-driving technology, but so far, details about the Austin robotaxi debut remain sparse. He’s mentioned the rollout will start with 10 to 20 Model Ys operating in what the company deems the "safest" areas of Austin. However, Tesla has yet to disclose who the riders will be, how it will charge for rides, or how it will monitor vehicles remotely. While Democratic lawmakers are calling for caution, it remains to be seen how much influence their request will have in a state where Republicans control both the legislature and the governor’s office. Reuters 

Google Faces Legal Hurdle as EU Court Adviser Sides with Regulators

Google is facing a potential blow in its long-running legal battle with European antitrust regulators. On Thursday, a senior adviser to the EU’s top court recommended upholding a €4.1 billion fine against the tech giant over its Android mobile operating system, a case that dates back to a 2018 ruling by the European Commission. The Commission had accused Google of abusing its market dominance by requiring Android phone makers to pre-install Google Search and Chrome in exchange for access to the Play Store, while blocking them from offering rival Android versions.

Juliane Kokott, Advocate General at the Court of Justice of the European Union (CJEU), rejected Google’s appeal, calling its legal arguments “ineffective.” She also dismissed the idea that regulators should compare Google’s behavior with that of a hypothetical “equally efficient competitor,” saying the company’s dominant market position gave it a structural advantage. While Kokott’s opinion is non-binding, CJEU judges follow similar advice in most cases, with a final ruling expected in the coming months.

In response, Google said it was disappointed with the opinion, arguing that it could discourage investment in open platforms like Android. The company maintains that Android has increased consumer choice and supported thousands of businesses globally. Still, with over €8 billion in fines from EU investigations over the past decade and more scrutiny on the horizon Google’s regulatory challenges in Europe show no signs of slowing down. Finance.Yahoo

Sam Altman Says Meta Is Offering $100M Signing Bonuses to Lure OpenAI Talent

OpenAI CEO Sam Altman claims Meta is offering signing bonuses of up to $100 million in an attempt to recruit top talent from his team. Speaking on the Uncapped podcast hosted by his brother Jack, Altman said, “They started making giant offers to a lot of people on our team... like $100 million signing bonuses.” So far, he added, none of OpenAI’s top performers have accepted the offers.

Altman didn’t hold back in his critique of Meta’s AI efforts. While acknowledging the company’s ambition, he suggested its innovation track record falls short. “There’s many things I respect about Meta, but I don’t think they’re a company that’s great at innovation,” he said. “I think we understand a lot of things they don’t.” Meta has not commented on the allegations.

The comments come amid reports that Mark Zuckerberg is taking a hands-on role in rebooting Meta’s AI push, meeting with researchers personally and reorganizing offices to accelerate progress. Meta’s recent $14.3 billion investment in Scale AI along with bringing in its 28-year-old CEO Alexandr Wang signals just how serious the company is about catching up in the race toward AI superintelligence. CNN 

Minor Headlines 

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• China Approves Rare Earth Export Licenses for Select Companies, Says Commerce Ministry. Reuters

• Apple Reportedly Exploring AI to Help Design Its Own Chips. Bloomberg 

• Japan’s TDK Buys U.S. Smart Glasses Startup SoftEye. CNN

• Nippon Steel CEO Dismisses U.S. Golden Share as Threat to Strategy. Reuters 

• Smarter Web Co. Shares Soar After Multi-Million Pound Bitcoin Investment. CNN

• Vodafone Taps Microsoft Exec as New £2M Finance Chief. CityAM 

• Meta Sues Developer of Deepfake App for Bypassing Ad Rules With AI Nudity Tool. CityAM 

• Trump Faces Backlash From MAGA Supporters Over Possible Iran Attack. Reute

  
  

• Gen Z Word of the Day 

 Take Several Seats

If someone is really getting on your nerves, you might tell them to take several seats.