The Federal Reserve ignored Trump’s interest rate demands — and he’s not taking it well [CNN]
Hours after the Fed announced its decision to hold rates steady on Wednesday, Trump, who nominated Fed Chair Jerome Powell in his first term, accused Powell and his colleagues of failing “to stop the problem they created with Inflation….”
“I am not going to have any response or comment whatsoever on what the president said,” Powell told reporters. “It is not appropriate for me to do so.”
U.S. Economy Finished the Year on Strong Note, but Faces Hurdles [NYT]
U.S. gross domestic product, adjusted for inflation, grew at a 2.3 percent annual rate in the fourth quarter of last year…. That was down from 3.1 percent in the third quarter but nonetheless represented an encouraging end to a year in which the economy again defied expectations….
But there are also pockets of weakness. Businesses invested less in new buildings and equipment in the fourth quarter, and exports fell. The rebound in the housing market may prove short-lived: Mortgage rates have risen in recent months, and the market for existing homes remains frozen. And some economists said the strong spending numbers may have been partly the result of consumers moving up purchases to get ahead of tariffs.
SoftBank in Talks to Invest Up to $25 Billion in OpenAI [Bloomberg via Yahoo!]
That would be in addition to the $15 billion that Masayoshi Son’s SoftBank has committed to Project Stargate, the Texas-based joint venture with OpenAI to build data centers and other AI infrastructure to support the ChatGPT maker…. SoftBank has been in search of an opportune moment to enter the lucrative AI hardware market after years of uneven bets on AI startups via the Vision Fund.
OpenAI’s Banker Joins Merchant Bank to Woo Tech Founders [WSJ]
BDT & MSD… is hiring Ryan Nolan, a top banker at Goldman Sachs, to co-lead its technology practice, executives said. Nolan is close to artificial-intelligence leader OpenAI and is advising on its planned restructuring and other matters….
“We tell founders: We can give you trusted advice on your business, give you capital to invest in your business and give you options to diversify your wealth,” said [co-CEO Greg] Lemkau, previously co-head of investment banking at Goldman.
Deutsche Bank’s Sewing to Cut Management Roles as Costs Rise [Bloomberg via Yahoo!]
Expenses rose 14% from a year ago, overshadowing a better-than-expected performance in the investment bank, where fixed-income traders record their best fourth quarter on record…. Deutsche Bank said on Thursday that “additional investments” mean it won’t reach an initial target of keeping costs below 62.5% of income this year. Instead, it is now aiming for a ratio of below 65%.
Soho House Drama: Dan Loeb Is Picking a Fight With Ron Burkle [WSJ]
Loeb unveiled a nearly 10% stake in the company in a regulatory filing Wednesday. In a letter to its board, Loeb argued that [Burkle’s] $1.7 billion [go-private] offer was a “sweetheart” deal that resulted from an opaque process….
The $9-a-share bid announced last month and backed by Burkle represented a significant premium to where the stock had been trading…. Loeb is pushing the board to consider outside bidders, who he said would pay a better price for the company, and said members would benefit from a visionary new owner.
