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CNBC Daily Open: Trump wants to floor it on economic growth as Warsh eyes the brakes

The Trump administration saw two embattled officials fending off criticism yesterday as the war in the Middle East flared up again.

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Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.

The Trump administration saw two embattled officials fending off criticism yesterday as the war in the Middle East flared up again, with U.S. President Donald Trump trying to lower pump prices and talk up growth.

Treasury Secretary Scott Bessent also defended the decision to increase bond purchases earlier last month, after investor Stanley Druckenmiller criticized the move.

If you were working late in Asia last night, you may not have caught any of this, simply because Microsoft Outlook and ChatGPT Work experienced outages. I know of more than a few office workers that were secretly grateful for that.

What you need to know today

U.S. President Donald Trump has unveiled a cunning plan to combat high pump prices for Americans, involving his claimed control over 65 billion barrels of oil reserves in Venezuela.

He will meet with U.S. refiners and fuel distributors, looking for ways to expand domestic refining capacity and bring down gasoline prices, according to a White House official.

Prices at U.S. pumps were at $4.08 per gallon on average nationwide Monday, according to AAA data, which is nearly 30% higher compared to the same time last year.

However, there is just one snag. Experts told CNBC that his deal with Venezuela will not lower gas prices anytime soon.

Venezuela’s oil infrastructure is in a state of disrepair, and it will require about $180 billion of investment till 2040 to return the country to peak production, according to Rystad Energy.

The South American nation is currently producing around 1.2 million barrels a day, down from a peak of 3.5 million bpd in the late 1990s.

Trump also has one eye on the Middle East, vowing to hit Iran “hard” after the Islamic Republic said it launched an attack on two U.S. bases in Jordan.

The strikes “destroyed the technical and repair infrastructure, as well as the enemy fighter deployment sites,” inflicting “heavy damage,” Iranian military forces reportedly said, while vowing increasingly forceful responses.

Growth and the Fed

Trump also continued his push for the Fed to lower interest rates, arguing that the U.S. could grow at rates of up to 20% (yes, that is not a typo), and adding such rapid growth should not prompt the central bank to raise interest rates.

“Success in growth does not cause inflation,” the U.S. president said. However, growth has never reached anywhere close to the levels Trump is saying, except for one Covid pandemic-related surge of 34.9% in 2020, which notably followed a 28% contraction in the previous quarter.

The most recent GDP numbers, however, are a far cry from the 20% annualized growth touted. Real GDP increased at a 1.5% annualized rate in the second quarter of 2026, down from 2.1% in the first quarter, according to the BEA’s latest estimate.

The president’s stance would then put him at odds with Fed Chairman Kevin Warsh, who is expected by markets to hike rates at the Fed’s meeting in September.

Odds for a move at the Sept. 15-16 meeting jumped to 66.1% on Monday, nearly double where they were before Warsh’s speech at Jackson Hole over the weekend, according to the CME Group’s FedWatch tool.

Treasury Secretary Scott Bessent, meanwhile, defended the department’s decision to double the planned size of buybacks of longer-dated U.S. bonds.

Investor Stanley Druckenmiller, Bessent’s former mentor, argued that the policy amounted to “price management” rather than an attempt to improve market liquidity, and risked undermining the Treasury’s credibility.

Outlook and ChatGPT outages

But the most important news for office workers Monday stateside would be that they had a rare reprieve from some of their work, as Microsoft Outlook and OpenAI’s ChatGPT Work experienced outages.

Users reported problems with Outlook, while OpenAI said users may experience problems starting or continuing tasks in ChatGPT Work, temporarily disabling two of the modern office’s favorite methods of assigning more work.

Anyone who failed to send an email, and then failed to ask AI to write an excuse for not sending that email, finally could legitimately say “I couldn’t do it, honest!”

— Lim Hui Jie

And finally…

FTC sues Amazon, accusing the e-commerce giant of misleading advertisers

The Federal Trade Commission on Monday sued Amazon, alleging the e-commerce giant “secretly and systematically overcharged” advertisers on its platform by manipulating its pricing and auction systems.

The lawsuit, which was joined by 22 state attorneys general, argues that Amazon may have reaped more than $20 billion from advertisers by using “hidden surcharges” dating back to a change to its auction rules that took effect in 2019.

However, the company argues that its auction systems have saved advertisers $8 billion between 2021 and 2025, not cost them extra.

— Annie Palmer

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Technologies

Passengers and crew foil co-pilot’s apparent attempt to crash FlyDubai flight to Israel

One of the pilots on a FlyDubai flight headed for Israel stabbed the second pilot, according to Israeli Prime Minister Benjamin Netanyahu.

On-duty flight crew and passengers managed to foil a pilot’s apparent attempt to crash a FlyDubai flight, after reports emerged of a fight in the cockpit.

The incident on flight FZ1073 from Dubai to Tel Aviv happened when a co-pilot stabbed a pilot, according to Israeli Prime Minister Benjamin Netanyahu, who praised the victim’s quick thinking.

“Despite being stabbed and seriously injured, he fought back, resisted, opened the cockpit door, and enabled passengers and crew to overpower the attacker — preventing a catastrophic mid-air disaster. He saved the lives of 174 people, including Israeli citizens and other nationals,” Netanyahu wrote in a post on X.

FZ1073 was diverted to the Tabuk airport in Saudi Arabia, the airline said, after being successfully secured and diverted by flight crew.

FlyDubai in a statement said that an “altercation” occurred on the flight deck of the plane, but did not mention a stabbing.

However, the airline added that the underlying reasons and motives for the clash is currently unknown, urging all parties to refrain from speculation.

The injured pilot was identified by Netanyahu as Indian national Smit Machchhar. No details have been released on the identity of the attacker, except that he was being interrogated by Saudi authorities.

The Indian embassy in Riyadh said on X that Machchhar is in a hospital in Tabuk, and is reported to be in stable condition.

The Israeli Prime Minister also identified the passenger who broke into the cockpit as Yaniv Hayun, calling him a “hero” and adding he deserved “a global medal of honor.”

Flight data from tracking site FlightRadar24 showed that the plane had experienced extreme altitude fluctuations before broadcasting a “general emergency” squawk code.

FZ1073 had dropped from over 14,000 feet in just 29 seconds, and FlightRadar24 also added that vertical speeds ranging from approximately -30,000 to +10,000 feet per minute were observed from the transponder data.

For context, vertical speeds during normal operations rarely exceed plus or minus 4,000 feet per minute, it added.

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Technologies

South Korean President Lee Reins In Alaska LNG Project Participation Following Trump’s Endorsement

South Korea’s proposed $200 billion U.S. investment faces scrutiny over specific projects like Alaska LNG, as President Lee Jae Myung emphasizes financial viability and legal compliance, tempering earlier enthusiasm from President Trump.

South Korea’s proposed $200 billion investment in the U.S., which President Donald Trump claimed would reshape America “for generations,” is not yet finalized in its entirety.

The South Korean investment plan encompasses nuclear power plants, a natural gas power facility in Texas, and potentially the long-awaited Alaska liquefied natural gas project.

Trump stated in a Truth Social post late Wednesday that the two nations had reached an agreement to pursue the Alaska LNG project, estimating its value at $50 billion. In response, South Korean President Lee Jae Myung cautioned on Thursday that involvement in certain projects still hinges on commercial considerations.

Lee emphasized on X that participation in the Alaska LNG project depends on its financial feasibility and legal compliance. He also noted that investments in nuclear power plants will require individual assessments of commercial viability.

The U.S.-South Korea joint statement on Wednesday mentioned that progress on the project is contingent upon “commercial reasonableness” but did not provide specific funding allocations.

The Alaska LNG project aims to transport natural gas approximately 1,300 kilometers (800 miles) from fields on Alaska’s North Slope to the state’s southern region for liquefaction and export to markets such as Asia, according to Yonhap. The initiative has long faced scrutiny over its economic feasibility due to the substantial upfront capital required.

Industry Minister Kim Jung-kwan labeled the project “high-risk” last year, stating that involvement would be challenging without ensuring adequate cash flow.

Overall, the investment package includes $22.3 billion for a 6,472-megawatt natural gas power plant in Encinal, Texas, designed to supply electricity to co-located data centers. The project will be spearheaded by developer Related Cos. and U.S. energy company NextEra Energy.

Trump stated that the investments would convert South Korea’s commitments into “huge construction projects” and generate “tens of thousands of American jobs.”

“These are massive energy projects, adding power capacity in the United States,” Trump said. “This is new construction, new manufacturing, and great jobs for American workers.”

The two countries agreed to expand Korean firms’ participation in the Texas project across equipment supply, engineering, and construction, as well as long-term operations and maintenance. The U.S. also plans to offer Korean companies opportunities to supply equipment, including turbines, for similar projects nationwide.

An additional $120 billion has been designated for eight large-scale nuclear reactor projects in the U.S. Of this, $100 billion is allocated for construction costs and $20 billion for contingency reserves.

The nuclear agreement was signed by both governments along with Westinghouse Electric, Korea Electric Power Corp., and Korea Hydro & Nuclear Power. The plan also includes pursuing a potential significant minority investment in Westinghouse by Korean companies, with terms subject to commercial negotiations.

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Technologies

SEC Advances Crypto Custody Rules as Major Legislation Languishes in Congress

The SEC has proposed new crypto custody rules for investment advisers and funds while comprehensive legislation remains stalled in Congress, creating a regulatory pathway for digital asset holdings.

The U.S. Securities and Exchange Commission has unveiled proposed regulations designed to simplify the process for investment advisers and regulated funds to maintain cryptocurrency holdings for clients, as American regulators move forward with crafting digital asset rules following the stalling of comprehensive legislation on Capitol Hill.

The proposal, revealed Thursday, would create a specialized framework governing how registered investment advisers, investment companies, and business development companies maintain custody of crypto assets.

The modifications aim to update decades-old custody requirements and eliminate regulatory obstacles that the SEC says have restricted advisers’ capacity to provide crypto-related investment options.

Under the proposed regulations, crypto assets could be held in self-custody under “certain circumstances,” while state trust companies could also function as custodians for crypto assets belonging to clients and regulated funds.

The changes could also grant regulated funds expanded authority to offer investors crypto-related investment strategies, according to the SEC.

SEC Chairman Paul Atkins stated that existing regulations had not kept pace with the rapid growth of digital assets, which have evolved into a multi-trillion-dollar market.

“Today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before,” Atkins said.

The proposal arrives as U.S. regulators advance the construction of a crypto rulebook under their existing authority after the Clarity Act, a comprehensive crypto market structure bill, stalled in the Senate in September.

This represents another step in the SEC’s broader initiative to reshape the U.S. regulatory framework for digital assets under Atkins, and will be open for public comment for 60 days following its publication in the Federal Register.

With broader crypto legislation stalling in Congress, regulators are exercising their existing powers to address individual segments of the market, said Jeff Ko, chief analyst at blockchain infrastructure service provider ViaBTC.

“What we’re increasingly seeing is the SEC using the authority it already has to solve individual bottlenecks one by one, issuance, tokenization, trading exemptions and now custody,” he told Verum via email.

The changes could also intensify competition among crypto custodians, potentially reducing the cost and complexity of investing in digital assets, he said, adding that institutional custody has historically been concentrated among a relatively small number of providers.

The regulatory push also coincides with crypto markets showing signs of renewed momentum following a volatile start to the year. Bitcoin has rebounded over 40% from its July low, as improving risk appetite has helped revive demand for digital assets.

The recovery follows a prolonged downturn from late 2025 into the first half of 2026.

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