SPX: S&P 500 Logs First Record of 2025 as Trump Pushes for Lower Interest Rates

Can the US President lower interest rates? No. But that doesn’t stop Donald Trump from trying to enforce it.

🤑 S&P 500 Hits First Record of 2025

• The S&P 500 (SPX) index pumped to a record high as investors bought into Donald Trump’s demand for interest rates to get lower “immediately.” The Wall Street average added 0.5% to close Thursday’s session at 6,118.71.
• The S&P 500’s two peers also pushed higher on the day. The Dow Jones Industrial Average DJI added nearly 1% to 44,565.07 and the Nasdaq Composite IXIC eked out a tiny 0.2% gain to 20,053.68.

🥊 Trump’s Fresh Jab at the Fed

• Speaking at the World Economic Forum in Davos (virtually), Donald Trump addressed interest rates for the first time since taking office. “I’ll demand that interest rates drop immediately,” Trump said to the thousands of people gathered in the pricey Swiss town.
• “And likewise, they should be dropping all over the world. Interest rates should follow us all over,” the US President added.

☝️ But Mr. President…

• Can Donald Trump order the reduction of interest rates? No, not at all. He doesn’t have the authority to set or demand changes in borrowing costs because that’s not up to the President to decide. It sits with the Federal Reserve.
• The Fed — the US central bank — acts as an independent institution and it calls the shots on interest rates. Presently, the Fed is headed by Jay Powell who has said Trump can’t fire or demote him and he and other Fed officials have planned two cuts this year. But this could change if data changes.