Powell warns of cyber risks

Jerome Powell is warning that cyberattacks are becoming a bigger threat to banks and the plumbing that moves money through the United States financial system. (cnbc.com) Powell and Treasury Secretary Scott Bessent met major bank chiefs in Washington on Tuesday, April 8, after Anthropic rolled out its Claude Mythos Preview model in limited release. Bank of America’s Brian Moynihan, Citigroup’s Jane Fraser, Goldman Sachs’ David Solomon, Morgan Stanley’s Ted Pick and Wells Fargo’s Charlie Scharf attended, while JPMorgan Chase’s Jamie Dimon did not. (cnbc.com) The immediate concern was that more capable artificial intelligence tools could help hackers find weaknesses in software and critical systems faster. Anthropic said it had been discussing the model’s cyber capabilities with the Cybersecurity and Infrastructure Security Agency and the Center for AI Standards and Innovation. (cnbc.com) For the Federal Reserve, cyber risk is not limited to bank websites or customer accounts. The central bank also oversees institutions and operates payment services that facilitate United States dollar transactions and settlements. (federalreserve.gov) The Fed’s July 2025 cybersecurity report says its work covers supervised banks, third-party service providers and the resilience of the broader financial system. That report lists geopolitical tensions, cyber-criminal activity, third-party providers and emerging technology-related threats among current risks. (federalreserve.gov) That focus extends beyond the Fed. The Financial Stability Oversight Council, which includes the Treasury secretary and the Federal Reserve chair, says it is charged with identifying and responding to emerging threats to United States financial stability. (home.treasury.gov) In its 2025 annual report, the council said public and private financial-sector partners should consider the cryptographic risks posed by quantum computers and prepare to shift toward quantum-resistant encryption. The report treats cyber threats as a systemwide issue because large financial firms, markets and infrastructure are tightly connected. (home.treasury.gov) Powell’s warning lands as regulators are talking less about a single bank breach and more about whether one successful hit could ripple through payments, funding markets and shared service providers. The message from Washington is that no major successful incident has happened yet, but officials are preparing as if one eventually could. (federalreserve.gov; cnbc.com)