---
type: "AIHallucinationFinding"
title: "A financial economist preparing testimony for a Congressional briefing on regulatory inflation…"
citation_id: "RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011-Sonnet46"
finding_uid: "US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-011--sonnet-46-websearch"
question_uid: "US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-011"
regulation_id: "US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024"
regulation_slug: "CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024"
regulation_title: "Amendments to CFTC Regulation 4.7 - Qualified Eligible Person Portfolio Requirements for CPOs and CTAs"
regulator_short_code: "CFTC"
regulatory_body_id: "CFTC-US-001"
jurisdiction_code: "US"
j_level: "J3"
ai_subject: "claude-sonnet-4-6"
ai_subject_display: "Claude Sonnet 4.6 (web search on)"
ai_subject_version: "sonnet-46-websearch"
response_failure_mode: "inference_drift"
substrate_document_name: "R4-FINAL_RULE-00021"
substrate_document_path: "https://reglegbrief.com/substrate/US/CFTC/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/_b1_results/R4-FINAL_RULE-00021/source.pdf"
substrate_section_anchor: "NPRM pre-print CPI-U buying-power figures (Feb 2023)"
citation_issue_types: ["Pretextual"]
audiences: ["ai_labs", "practitioners", "sector_dept"]
published_at: "2026-06-11T07:31:11.660052+00:00"
substrate_version: 1
methodology_version: "2.3"
license: "CC-BY-4.0"
resource: "https://reglegbrief.com/regulators/j3/us/cftc/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/ai-labs/finding/US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-011--sonnet-46-websearch/"
tags: ["ai-hallucination", "inference_drift", "cftc", "cpo-cta-regulation-4-7-qep-thresholds-2024", "us"]
timestamp: "2026-06-16T00:00:00+00:00"
---

# AI Hallucination Finding: A financial economist preparing testimony for a Congressional briefing on regulatory inflation…

- **Citation ID.** `RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011-Sonnet46`
- **Finding UID.** `US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-011--sonnet-46-websearch`
- **Regulation.** [`CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024`](/okf/regulations/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024.md) — Amendments to CFTC Regulation 4.7 - Qualified Eligible Person Portfolio Requirements for CPOs and CTAs
- **Regulator.** [`CFTC-US-001`](/okf/bodies/CFTC-US-001.md) — Commodity Futures Trading Commission
- **AI subject.** Claude Sonnet 4.6 (web search on)
- **Failure mode.** [`inference_drift`](/okf/taxonomy/failure-modes.md)
- **Published.** 2026-06-11T07:31:11.660052+00:00

## Question put to the AI subject

A financial economist preparing testimony for a Congressional briefing on regulatory inflation adjustment has asked you to draft a brief technical note quantifying the inflation gap that the CFTC's September 2024 amendments to Regulation 4.7 sought to address. The note should give the specific CPI-U-based buying-power calculations the CFTC documents in the NPRM and the final rule, with citations to the relevant Federal Register passages.

## AI subject's verbatim answer

The October 2023 NPRM used CPI-U data through approximately February 2023 to document the inflation gap at the time of the proposal. At that reference month: $2,000,000 in 1992 dollars approximately equals $4,070,000 in February 2023 dollars (approximately 103.5% cumulative inflation); $200,000 in 1992 dollars approximately equals $407,000 in February 2023 dollars.

## Verbatim regulator text contradicting the answer

> NPRM pre-print PDF (R4-FINAL_RULE-00021, Wayback-rescued from cftc.gov media URL): 'using CPI-U data, as of February 2023, the $2,000,000 threshold in the Securities Portfolio Test has the same buying power as approximately $4,270,000, and the $200,000 threshold in the Initial Margin and Premiums Test has the same buying power as approximately $427,000.'

_Source:_ [R4-FINAL_RULE-00021](https://reglegbrief.com/substrate/US/CFTC/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/_b1_results/R4-FINAL_RULE-00021/source.pdf)
_Section anchor:_ NPRM pre-print CPI-U buying-power figures (Feb 2023)

## Failure mode

**`inference_drift`** — Inference drift — the AI inferred a conclusion the regulator's text does not warrant, often by combining unrelated provisions.

## Citation-issue types

- **Pretextual** — <substrate/US/CFTC/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/_b1_results/R4-FINAL_RULE-00021/source.pdf>

## Related concepts

- Regulation: [CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024](/okf/regulations/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024.md)
- Regulator: [CFTC-US-001](/okf/bodies/CFTC-US-001.md)
- Failure-mode taxonomy: [inference_drift](/okf/taxonomy/failure-modes.md)
- Methodology: [v2.3](/okf/methodology.md)
- Editorial standards: [right of reply](/okf/editorial-standards.md)

## Reproduction

Citation ID: `RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011-Sonnet46`

Resource URL (HTML view of this finding):

<https://reglegbrief.com/regulators/j3/us/cftc/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/ai-labs/finding/US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-011--sonnet-46-websearch/>

This finding is reproducible against the substrate document linked above, using the same AI subject, the same methodology version, and the verbatim question text.