Finance

Edward Woodford SM '15 founded Zerohash, a crypto and stablecoin infrastructure company, aimed at helping “financial institutions and fintechs build out their own products for stablecoins, crypto trading, and tokenization,” reports Ben Weiss for Fortune. “Over eight years, Woodford has managed to ride multiple crypto booms and busts,” writes Weiss. “It’s not just that we’re a survivor,” says Woodford. “We’ve actually thrived in that market, and actually now, I think we can accelerate that even further.”

Prof. Andrew Lo speaks with Wall Street Journal reporter Cheryl Winokur Munk about how AI tools could be used to help people with financial planning. Winokur Munk writes that Lo recommends providing “just enough information to get relevant answers. And leave out highly personal details like your name, address, salary, employer or specific assets…as such details put people at risk should the AI be compromised.” Lo also advises “trying several AI platforms,” writes Winokur Munk. And “the advice should be run by a professional, trusted family or friends. Be a bit skeptical and double-check with humans.”

Prof. Andrew Lo speaks with NBC Boston reporter Daniela Gonzalez about how AI tools could be used as a starting point to help people manage their monthly expenses and improve their savings strategies. Lo notes that AI tools “can tell you, given the kind of things you're looking to purchase, where the various deals might be.” He added that “once you get the feedback, you have to make sure that what you're getting is legit, versus what they call hallucinations that large language models are likely to do on occasion.”

Writing for Financial Times, Prof. Kristin Forbes explains how to approach to tariff trade-offs. “If even a fraction of the tariffs that have recently been announced are implemented, inflation will pick up and domestic activity will slow — at least over the next year or so,” explains Forbes. “The Fed will need to trade off mitigating the impact of another round of inflation with supporting employment.” 

Prof. Andrew Lo speaks with Bloomberg reporter Lu Wang about how AI tools could be applied to the financial services industry, working alongside humans to help manage money, balance risk, tailor strategies and possibly even act in a client’s best interest. “I believe that within the next five years we’re going to see a revolution in how humans interact with AI,” says Lo. He adds that “the financial services industry has extra layers of protection that needs to be built before these tools can be useful.”

Prof. Haoxiang Zhu speaks with Bloomberg reporters Jayna Rohslau and Katherine Doherty about a proposal by U.S. regulators "to rework the pattern day trading rule.” “Today, trading is often commission-free, although not in all securities, and there’s less concern about excessive commission cost,” explains Zhu. “For this reason, I think a moderate reduction in the minimum margin for pattern day trading is fine, in particular if the reduction applies to securities for which trading is now commission-free.” 

Neha Narula, director of the MIT Digital Currency Initiative, joins Taylor Wilson of USA Today’s The Excerpt podcast to discuss the future of cash as the use of digital currencies expands. On her vision for the future of money, Narula says, “We’ve had a lot of promise, we’ve had a lot of exciting ideas, but now it’s time to really buckle down and really build products that help users and help make their lives better.” 

Writing for The Wall Street Journal, Sloan Senior Lecturer Robert Pozen highlights the impact of U.S. tariffs on foreign investment in U.S. Treasury securities and U.S. corporate bonds. “Nevertheless, since target countries will want to respond to reciprocal tariffs, they may stop buying or even sell U.S. debt securities,” explains Pozen. “Either response would increase U.S. interest rates and decrease economic growth. International trade flows and international investing are two sides of the same street.” 

Prof. Sarah Williams speaks with Newsweek reporter Micah McCartney about how China’s construction boom lead to largely uninhabited developments dubbed “ghost cities”. Williams explains: “They needed a return on their investment, so they opened up new land and new loans for overleveraged real estate developers, so those developers could use these loans to pay back previous loans. The easy way to describe it is that it is a bit of a Ponzi scheme."

Prof. Jonathan Gruber speaks with GBH All Things Considered news anchor Judie Yuill to address recession concerns. “I think the important takeaway I have is that the real risks for our nation are not really short term, they’re long term,” explains Gruber. “We are a knowledge, investment and innovation-based economy. That’s what made America great for 80 years. The base of that innovation — the base of this knowledge economy — is our world-leading universities. If we start cutting them, we’re going to pay a long-run price in terms of our ability to grow as a nation.”

Prof. Sarah Millholland, Prof. Christian Wolf, Prof. Emil Verner, Prof. Darcy McRose, Prof. Marzyeh Ghassemi, Prof. Mohsen Ghaffari and Prof. Ariel Furst have received the 2025 Sloan Research Fellowship for “being among the most promising scientific researchers currently working in their fields,” reports Michael T. Nietzel for Forbes. “Sloan Research Fellows are chosen in seven scientific and technical fields—chemistry, computer science, Earth system science, economics, mathematics, neuroscience, and physics,” explains Nietzel. 

In a letter to the Financial Times, Prof. Daron Acemoglu and his colleagues highlight the importance of providing access to affordable financing for the world’s poorest countries. “IDA, the World Bank’s concessional financing facility for these countries, has a proven track record for providing this support and its upcoming replenishment is a moment for the international community to match their stated concern with a stepped-up financial contribution,” they write. “We urge finance ministers of the G20 countries to lead this effort and increase contributions to the 21st replenishment of the International Development Association (IDA21).”

A new working paper by MIT Prof. Antoinette Schoar and Brandeis Prof. Yang Sun explores how different people react to financial advice, reports Robin Wigglesworth for Financial Times. “The results indicate that most people do update their beliefs in the direction of the advice they receive, irrespective of their previous views,” writes Wigglesworth. 

Writing for Project Syndicate, Research Scientist Christian Catalini contributes to a Project Syndicate opinion piece makes the case for implementing cryptocurrency regulation that favors “builders over speculators.” Catalini and his co-authors write: “At the end of the day, policymakers in Washington must come together and draft new rules, rather than trying to squeeze crypto use cases into laws from nearly a century ago. And the industry, for its part, needs to tackle the many problems that traditional financial services and crypto leaders have long ignored.” They add: “The upside, much like in the early days of the internet, is a technology that can restore competition to sectors that haven’t seen it in decades.” 

Prof. Jeff Gore speaks with Caity Weaver of The New York Times about the future of the U.S. penny and his belief that the penny should be retired. “People think that because it exists and is used, it means that it’s useful,” Gore notes. “We’re taking something that is actually a valuable commodity, something that has actual value, and then we’re converting it into something that people just throw away.”