Good Wednesday morning. Welcome to Squawk on the Street. I'm Sarah Eisen with Carl Kintania and David Faber. We are live, as always, at post-9 of the New York Stock Exchange. Coming up this hour, Treasury Secretary Scott Besson takes the Hill. We'll take you live to the hearing of the House Financial Services Committee in just a bit. Plus, the latest on AMD's results, what it says about the AI trade as that stock pulls back despite solid

earnings. And speaking of AI, the sell-off in software intensifies this morning as AI disruption

fears grow. What that dislocation means for the broader market straight ahead.

Let's begin this morning with breaking news and the opening statements from the Treasury

Secretary on Capitol Hill this morning. Leslie Picker has that.

Morning, Leslie.

Good morning, Carl.

Treasury Secretary Scott Bessent, focusing in his opening remarks on this idea of regulation by reflex, as he calls it.

He is expected to say that rather than preempting crises, regulators have frequently reacted to them after the fact.

He calls that, quote,

hazmat cleanup instead of preventing dangerous spillovers in the first place. Secretary Bessent,

who will be speaking with the House Financial Services Committee shortly, saying this regulation by reflex has undermined safety and soundness and driven excessive regulation that could lead to economic

stagnation.

He's expected to say, quote, under President Biden, the bank regulators preoccupied themselves

with reputation risk, climate-related financial risks, and other risks with no clear nexus

to safety and soundness.

He is expected to say federal agencies should avoid the temptation to create a zero-risk financial

system.

So we will be zoning in on those statements as well as the Q&A to follow with Congress, which

should focus on more specific surrounding the deregulatory priorities, as well as perhaps

Fed independence and other key topics that is front and center across Congress and beyond, guys.

Okay, Leslie Picker.

...