“The mind is a fascinating instrument that can make or break you.” ― yvan Byeajee

1. Home Prices Posted Largest Annual Drop in More Than 11 Years in April — U.S. existing home sales, which make up most of the housing market, fell 3.4% in April from the prior month to a seasonally adjusted annual rate of 4.28 million, the National Association of Realtors reported. April sales fell 23.2% from a year earlier.
The national median existing-home price fell 1.7% in April from a year earlier to $388,800, the biggest year-over-year price decline since January 2012, NAR said. Median prices, which aren’t seasonally adjusted, were down 6% from a record $413,800 in June. Home prices have fallen the most in the western half of the U.S., while prices continue to rise from a year earlier in many eastern markets.
2. Risks Posed by AI Technology Spur Calls for New Regulatory Agency — Rising concern in Congress over the risks posed by powerful artificial- intelligence tools in the hands of consumers is giving momentum to a long-simmering idea: Creating a federal agency to regulate technology platforms including AI systems. The agency could be charged with granting licenses for AI platforms, setting operating standards and enforcing compliance with the rules, according to proponents including Sam Altman, chief executive of ChatGPT creator OpenAI. It is one of many ideas being kicked around in Washington as lawmakers contend with a new technology with humanlike abilities to complete an array of tasks, including holding conversations and creating videos—but which also could be used to commit sophisticated crimes and spread false information.
3. Tokyo Meeting Highlights Democracies’ Push to Secure Chip Supplies — top executives from the biggest chip makers in the U.S., Taiwan and South Korea met the Japanese prime minister on Thursday as the world’s industrial democracies look to deepen cooperation in the production of components they increasingly see as central to national security. Japan’s Fumio Kishida met representatives of Intel, TSMC, Samsung and other chip companies, part of Tokyo’s push to step up its domestic manufacturing of computer chips. Kishida said it was essential to tackle “the global issue of stabilizing supply chains” as the U.S. and its partners look to exclude China from a global chip alliance.
The meeting featuring business executives and officials from what are sometimes called the “Fab Four” chip-making powers—the U.S., Taiwan, South Korea and Japan—came on the eve of a summit of leaders of the Group of Seven nations in Hiroshima, Japan, where bolstering strategies to contain China is a top agenda item.
4. Fed Chair Jerome Powell Keeps June Interest-Rate Pause in Play — federal Reserve Chair Jerome Powell suggested he was open to holding interest rates steady at the central bank’s meeting next month, saying that the current banking stress could mean rates may not need to rise as high as otherwise to slow the economy. The Fed has raised its benchmark federal-funds rate rapidly over the past year to fight inflation, most recently this month to a range between 5% and 5.25%, a 16-year high.
Officials have indicated that their decision on whether to raise rates again at their June 13-14 policy meeting could be a close call. A handful have said inflation and economic activity aren’t slowing enough to justify leaving rates unchanged. But others, including Powell, have hinted that they might skip a rate rise to assess the effects of their past increases and the banking-sector strains.

The week ahead — Economic data from Econoday.com: