Good Morning and Happy Friday! UnitedHealthcare finally named a new CEO - promoting company veteran Tim Noel following Brian Thompson's killing last month. Walmart’s shelling out $600k/year to retain some of its best managers, and Blackstone is set to acquire a $1 billion power plant near its Virginia data centers.

Trump signed an executive order promoting crypto, paving the way for a digital asset stockpile, while also criticizing Bank of America's CEO for sidelining ‘conservative business.’ Meanwhile, despite JPMorgan’s record-breaking annual profit, some employees are frustrated over lackluster bonuses.

Plus: Salesforce chief predicts today's CEOs will be the last with all-human workforces, EQT’s earnings signal a private equity dealmaking comeback, and 5 benefits of a competitive mindset at work.

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_{SQUEEZ OF THE DAY}

Trump vs. The Fed

It hasn’t even been a week since Donald Trump’s inauguration, and the President is already voicing strong opinions on Federal Reserve policy. Speaking in a virtual address at the World Economic Forum, Trump said, “I’ll demand that interest rates drop immediately. And likewise, they should be dropping all over the world.”

Trump didn’t stop there. Later, speaking to reporters in the Oval Office, he took aim at Fed Chair Jerome Powell, saying, “I think I know interest rates much better than they do, and I think I know it certainly much better than the one who’s primarily in charge of making that decision.”

Trump’s comments weren’t limited to monetary policy. He also called for lower oil prices, arguing that cheaper energy would ease inflation, ultimately pulling down interest rates.

Traditionally, U.S. presidents avoid commenting on Federal Reserve decisions to maintain the institution’s independence. But Trump has never been one to follow convention. During his first term, he frequently criticized Powell, calling him a “golfer who can’t putt” and accusing Fed officials of being “boneheads.”

The Federal Reserve has already cut interest rates by a full percentage point since September 2024, following years of sharp rate hikes to combat inflation. Despite these cuts, inflation remains above the Fed’s 2% target, and officials have signaled they may hold off on further reductions until mid-2025.

Trump’s ability to influence interest rates is limited, as the Fed operates independently, with decisions guided by economic data rather than political pressure. But Trump can shape monetary policy indirectly through appointments to the Fed’s board of governors and by influencing fiscal policy, such as government spending and deficits.

Takeaway: Although markets reacted positively yesterday, with stocks rising and Treasury yields dipping slightly, such political pressure from the President could lead to volatility down the road. Next week’s Fed meeting (Jan. 28–29) will be closely watched. Chair Jerome Powell is expected to emphasize data-driven decision-making and likely won’t provide any direct response to Trump’s remarks.

_{PRESENTED BY INCOGNI}

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Whether it’s stopping spam calls or safeguarding against identity theft, Incogni helps protect your most valuable asset: your security.

Short Squeez Exclusive: Get 55% off Incogni with code SHORTDEAL.

_HEADLINES

Top Reads

• Trump executive order delivers on 2 promises to crypto world (YF)

• Trump crypto czar hails executive order, slams Biden's treatment of industry (Fox)

• UnitedHealthcare names Tim Noel the new CEO (CNBC)

• Salesforce chief predicts today's CEOs will be the last with all-human workforces (Axios)

• Purdue Pharma, Sacklers reach $7.4 billion opioid settlement (CNN)

• Blackstone to buy $1 billion Virginia power plant near data centers (YF)

• Walmart will pay more than $600,000 a year to some top managers (CNN)

• CEOs embrace Trump with minimal employee resistance (Axios)

• The private equity business is back (YF)

• Trump confronts BofA CEO for not taking 'conservative business' (Fox)

• Texas asks Wall Street firms for details about DEI efforts (YF)

• Mortgage rates drop as Trump holds off on tariffs in first days in office (YF)

• Bank of America chief talks America's "uncorked" economy (Axios)

• Starbucks employees could soon be out of a job (Fox)

• JPMorgan Chase workers grouse over measly bonuses (Fortune)

• Big Tech earnings are coming, and Trump will be top of mind for investors (YF)

_{CAPITAL PULSE}

Markets Rundown

Stocks Finish Modestly Higher as Tech Lags

Equity markets edged higher on Thursday, with the S&P 500 closing at a new record. The 10-year Treasury yield climbed to 4.64%, putting pressure on the tech-heavy Nasdaq, though it remains on track for a strong weekly gain. 

WTI oil prices declined after President Donald Trump announced plans to urge Saudi Arabia and OPEC to lower prices.

On the economic front, initial jobless claims rose slightly due to wildfires in the Los Angeles area, but overall claims remain historically low, signaling a resilient labor market.

Investors are now looking ahead to next week’s mega-cap tech earnings and the Fed rate announcement as key market drivers.

U.S. Growth Momentum Amid Headline Volatility

Financial markets have been reacting to policy headlines from the Trump administration as it outlines its agenda for the next four years.

Despite tariff threats targeting Canada, Mexico, and China, equities have responded positively to the measured rollout of trade actions so far. While trade uncertainty may persist, the strong U.S. economic and earnings growth momentum remains intact.

The Atlanta Fed’s GDP forecast predicts 3% Q4 growth, suggesting the U.S. economy expanded 2.7% in 2024, well above its 2% long-term potential. Growth is expected to moderate slightly in 2025 but remain solid, supported by consumer resilience and a strong labor market.

Tech Earnings in Focus Next Week

With 14% of S&P 500 companies reporting so far, the earnings season has started on a positive note, led by financials highlighting improved margins and robust consumer strength.

Next week’s focus will shift to big-tech earnings, with Microsoft, Meta, Apple, and Amazon set to report. Profits for the Magnificent 7 are forecast to grow over 20% in Q4, compared to the 12% growth expected for the broader S&P 500.

While mega-cap tech continues to outpace the broader market, the narrowing growth gap reflects a healthy broadening in earnings performance.

Artificial intelligence remains a key driver of returns, but we see opportunities in sectors that have lagged over the past two years.

Movers & Shakers

• (+) Guidewire ($GWRE) +12% after Goldman initiated coverage on the software company with a ‘buy’ rating.

• (–) American Airlines ($AAL) -9% after the airline reported Q4 earnings; lowered its outlook.

• (–) Electronic Arts ($EA) -17% because soccer video game FC 25 experiencing low demand.

Private Dealmaking

• Neko Health, a full body scan startup, raised $260 million

• StackBlitz, an AI developer tools maker, raised $83.5 million  

• Fundraise Up, a fundraising platform for nonprofits, raised $70 million

• Lindus Health, a clinical trials research services company, raised $55 million

• Music AI, an AI app maker, raised $40 million

• Baya Systems, a system IP business, raised $36 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{NEIGHBORHOOD WATCH}

Real Estate Digest

After crossing the 7% threshold last week, the 30-year fixed-rate mortgage saw its first decline in six weeks. While affordability may remain a challenge, this is welcome news for potential homebuyers as there has been a corresponding uptick in purchase applications since the beginning of the year.

Latest News

• What Does the NYC Rental Market Look Like?

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New Listings

• 73 Rte de l'Altiport Apt: Les Allues, Savoie France: 5 Bed / 5.5 Bath - $7,271,162

• 30 Huntting St Southampton, NY: 6 Bed /  9 Bath - $9,595,000

• 110 Duane Street  New York, NY: 5 Bed / 3 Bath - $5,995,000

• 900 W Shore Rd, Mill Neck Oyster Bay, NY: 5 Bed / 6 Bath - $6,250,000 

• Tulsayab Quintana Roo Mexico: 4 Bed / 4 Bath - $3,300,000

Fill out this form to get personalized support for buying, selling, renting, or investing in real estate.

_{BOOK OF THE DAY}

After The Ivory Tower Falls

Today there are two Americas, separate and unequal, one educated and one not. And these two tribes—the resentful “non-college” crowd and their diploma-bearing adversaries—seem on the brink of a civil war.

Somewhere in the winding last half-century of the United States, the quest for a college diploma devolved from being proof of America’s commitment to learning, science, and social mobility into a kind of Hunger Games contest to the death.

That quest has infuriated both the millions who got shut out and millions who got into deep debt to stay afloat.

In After the Ivory Tower Falls, award-winning journalist Will Bunch embarks on a deeply reported journey to the heart of the American Dream. That journey begins in Gambier, Ohio, home to affluent, liberal Kenyon College, a tiny speck of Democratic blue amidst the vast red swath of white, post-industrial, rural midwestern America.

To understand “the college question,” there is no better entry point than Gambier, where a world-class institution caters to elite students amidst a sea of economic despair.

From there, Bunch traces the history of college in the U.S., from the landmark GI Bill through the culture wars of the 60’s and 70’s, which found their start on college campuses.

We see how resentment of college-educated elites morphed into a rejection of knowledge itself—and how the explosion in student loan debt fueled major social movements like Occupy Wall Street.

Bunch then takes a question we need to ask all over again—what, and who, is college even for—and pushes it into the 21st century by proposing a new model that works for all Americans.

The sum total is a stunning work of journalism, one that lays bare the root of our political, cultural, and economic division—and charts a path forward for America.

“A wrenching analysis of a nation fractured along stark educational lines.”

_{DAILY VISUAL}

Chinese Exports Shifting

_{PRESENTED BY HEBBIA}

Analysts: If You’re Still Diligencing By Hand, Read This

Andreessen Horowitz, Index Ventures, Google Ventures, and Peter Thiel just plugged $130 million into Hebbia (you know, the AI taking Wall Street by storm). 

Why? 

• Used by a third of the top 50 asset managers globally

• Saves hours of work per day on diligencing, screening, memo writing

• Understands, PDFs, emails, docs, and more of ~unlimited~ length

• Drafts one-pagers based on your team’s investment philosophy

Book a quick demo to see Hebbia in action.

_{DAILY ACUMEN}

Spending

If you’re unsure where your money disappears each month, a personal spending audit can offer clarity and control.

Unlike budgeting, an audit looks backward, analyzing your actual financial habits over a period—like three months—to uncover patterns and problem areas.

Begin by collecting statements from all financial accounts, including credit cards and digital payment platforms.

Categorize expenses into meaningful groups like housing, food, entertainment, and debt.

Next, identify patterns: highlight necessary expenses, note purchases you feel good about, and flag regrettable ones.

This process often reveals surprising areas for potential savings, such as unused subscriptions or lifestyle creep.

With this information, you can create a realistic budget that aligns with your financial goals, turning what feels like a daunting chore into an empowering step toward financial health.

_{ENLIGHTENMENT}

Short Squeez Picks

• 5 benefits of a competitive mindset at work

• 9 things you’re doing in public that show low self-confidence

• Gen-Z needs office etiquette skills

• Your personality might determine if music helps or hinders your productivity

• 6 ways continuous learning can advance your career

_{MEME-A-PALOOZA}

Memes of the Day