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Trump's 'Rate Pressure' Boosts U.S. Stock Market... S&P Hits Record High [Morning Briefing]

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Korea Economic Daily
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  • President Trump's pressure for interest rate cuts led the New York stock market's S&P 500 index to close at a record high.
  • President Trump stated he would demand an immediate rate cut if oil prices fall.
  • In negotiations with the U.S. central bank, he expressed a strong position to cut rates a lot.
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  • The article was summarized using an artificial intelligence-based language model.
  • Due to the nature of the technology, key content in the text may be excluded or different from the facts.

◆ New York Stock Market Rises on Trump's Rate Pressure... S&P 500 Closes at Record High

U.S. President Donald Trump pressured the Federal Reserve (Fed) to cut interest rates, leading to a strong close in the New York stock market on the 23rd local time. Overnight, the S&P 500 index closed at 6,118.71, up 32.34 points (0.53%) from the previous session. The S&P 500 index reached a record high in terms of closing price for the first time in about a month since the 6th of last month. The Dow Jones Industrial Average closed at 44,565.07, up 408.34 points (0.92%) from the previous session, and the Nasdaq Composite closed at 20,053.68, up 44.34 points (0.22%).

◆ Trump: "Rates Should Be Cut a Lot... Will Talk to Fed Chair at Appropriate Time"

President Trump announced that he would meet with Jerome Powell, the chairman of the Federal Reserve, to demand a rate cut. At an executive order signing ceremony held in the Oval Office of the White House, Trump responded to a question about whether he would talk to Chairman Powell to lower rates. Previously, at the Davos World Economic Forum (WEF), Trump requested Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to lower oil prices, stating that if oil prices fall, "I will demand an immediate rate cut." He explained at the signing ceremony, "If oil prices come down, inflation will decrease, and there will be no inflation. Then rates will come down." When asked if he thought the Fed would respond to such demands, he said, "Yes," and stated that he would take a "strong position." When asked how much he wanted rates to fall, he replied "a lot."

◆ Trump Hints at Nuclear Disarmament with China and Russia... No Mention of North Korea

President Trump, regarding nuclear disarmament negotiations with Russia and China, said, "We want to know if we can denuclearize, and I think it is very possible." In a live video speech at the World Economic Forum (WEF) held in Davos, Switzerland, Trump said, "In fact, before the 2020 election, I talked with Russian President Vladimir Putin about denuclearization between the two countries," adding, "If it had proceeded, China would have followed." He continued, "Putin liked the idea of significantly reducing nuclear weapons," and "Putin and I wanted to do it at the time. We had good conversations with China, and they would have joined." He claimed, "We would have made all countries follow (nuclear disarmament), and it would have been an incredible thing for the planet." Regarding China's nuclear capabilities, Trump mentioned, "China currently has significantly fewer nuclear weapons than the U.S., but they will catch up in the next 4-5 years." He did not mention North Korea in his nuclear-related remarks.

◆ North Korea at UN: "South Korea Should First Resolve Political Chaos"

In a UN conference discussing disarmament issues, representatives from North and South Korea debated security issues on the Korean Peninsula, with South Korea's December 3 martial law incident being mentioned. Ju Young-chul, counselor of North Korea's Permanent Mission to Geneva, argued at the UN Conference on Disarmament in Geneva, "South Korea should pay more attention to resolving its political chaos before blaming others." He responded to South Korea's pointing out that North Korea's nuclear development, which violates UN Security Council resolutions, is clearly illegal. Referring to the political situation after the December 3 martial law, he suggested resolving domestic issues first. Kim Il-hoon, counselor of South Korea's Permanent Mission to Geneva, countered, "We are pleased that North Korea has shown interest in democratic institutions." He continued, "We encourage the North Korean delegation to observe the process that demonstrates our democratic procedures and the resilience of our democracy," emphasizing, "This is what true democracy is about." The meeting saw continued criticism of North Korea's nuclear development and North Korea-Russia military ties.

Yesrang Kim, Hankyung.com Reporter yesrang@hankyung.com

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