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Wall Street Perspectives: Jamie Dimon Says Chipping Away at Fed Independence ‘Not a Great Idea’ (Bloomberg)
JPMorgan CEO Jamie Dimon said that the US Justice Department’s attacks on the Federal Reserve have the potential to undermine the independence of the central bank and possibly boost borrowing costs.
“Everyone we know believes in Fed independence,” Dimon said Tuesday on a conference call with members of the media after his company reported fourth-quarter earnings. “And anything that chips away at that is probably not a great idea. And in my view, will have the reverse consequences. It’ll raise inflation expectations and probably increase rates over time.”
Central Bank Standoff: Fed That Fights Back Is a Threat to Trump’s Takeover Plan (Bloomberg)
For the first time, Jerome Powell responded defiantly to the president’s attacks, and the administration is now worried about its plans to replace the Fed chair.
Inside the administration, there’s been surprise at
Powell’s forceful response and growing concern that the legal action could turn into a setback for Trump’s plans.
Some Trump officials and allies fear it’s now more likely that Powell will dig in and stay on the Fed board after May, while the chance of getting White House adviser Kevin Hassett — seen as Trump’s frontrunner — to be nominated and confirmed as Fed chair has taken a hit.
Inflation Nation: US Grocery Prices See Biggest Spike Since 2022 in December (Axios)
Cash Cut: White House to End Funding to Sanctuary Cities and States on Feb. 1 (Politico)
President Donald Trump on Tuesday said he will suspend federal funding to sanctuary cities and states beginning Feb. 1 as his administration’s immigration crackdown continues.
“Starting February 1, we are not making any payments to sanctuary cities or states having sanctuary cities because they do everything possible to protect criminals at the expense of American citizens,” Trump said during his address at the Detroit Economic Club, according to Politico.
He continued, “It breeds fraud and crime and all of the other problems that come, so we’re not making any payment to anybody that supports sanctuary cities.”
The Department of Justice has identified 11 states as sanctuary jurisdictions, including California, Illinois, Minnesota and New York. The District of Columbia is also considered a sanctuary jurisdiction.
Today in China: Xi Welcomes Stream of Leaders Shaken by Trump’s New World Order (Bloomberg)
South Korea’s Lee Jae Myung kicked off the trend this month, cementing an improvement in ties by becoming his nation’s first president to visit China since 2019.
Canada’s Mark Carney will follow suit when he arrives today, closing a near-decade gap in leader-to-leader diplomacy between Ottawa and Beijing in the Asian nation.
Days later, Prime Minister Keir Starmer is set to travel to the Chinese capital to buoy British business, marking a first since 2018. Germany’s chancellor, Friedrich Merz is also expected to visit next month.
Bank Battle: Wall Street Scrambles to Defuse Trump’s Credit Card Onslaught (Bloomberg)
Epstein Escalation: Facing Contempt Threat, Clintons Refuse to Testify in Epstein Inquiry (New York Times)
Bill and Hillary Clinton refused on Tuesday to testify in the House’s Jeffrey Epstein investigation, escalating a monthslong battle with its Republican leader, Representative James R. Comer of Kentucky, who quickly said he would take steps to hold them in contempt of Congress.
Comer’s relentless efforts to force them to testify reflect his overall approach to his panel’s Epstein inquiry. He has sought to deflect focus from President Trump’s ties to the convicted sex offender and his administration’s decision to close its investigation into the matter without releasing key information.
Instead, he has worked to shift the spotlight onto prominent Democrats who once associated with Epstein and his longtime companion Ghislaine Maxwell, according to the New York Times.
Read the Clintons' personal letter to Rep. Comer
here.
Minnesota
Watch: Six Prosecutors Quit Over Push to Investigate ICE Shooting Victim’s Widow (New York Times)
Six federal prosecutors in Minnesota resigned on Tuesday over the Justice Department’s push to investigate the widow of a woman killed by an ICE agent and the department’s reluctance to investigate the shooter, according to people with knowledge of their decision.
Climate Read of the Day: US Emissions Jumped By 2.4% in 2025 as Coal Power Rebounded (New York Times)
America’s greenhouse gas emissions increased by 2.4% in 2025 after two years of decline amid a resurgence of coal power, according to estimates published Tuesday by the Rhodium Group, a research firm.
The jump in emissions came as President Trump returned to office and moved to dismantle policies to tackle climate change while promoting fossil fuels.
For two decades, America’s electric utilities have been switching away from coal, the most polluting of fossil fuels, in favor of cleaner and often cheaper gas, wind and solar power. Over the next decade, US emissions are projected to decline more slowly than previously thought as a result of Trump’s policies.
Mideast Intervention: Trump Urges Iranians to Keep Up Protests in Face of Crackdown (Bloomberg)
Future of the Arctic: Greenland Says It Will Choose Denmark and Rules Out Joining US (Bloomberg)
Greenland’s prime minister categorically ruled out joining the US and said the Arctic territory prefers to be in a union with Denmark, suggesting the island is putting independence plans on the back burner for now.
Nielsen’s remarks come ahead of a high-stakes meeting
of Danish and Greenlandic foreign ministers with US Secretary of State Marco Rubio and US Vice President JD Vance in Washington today. The stated aim for the talks is to help defuse the administration’s renewed threats toward Greenland and begin repairing strained ties over the strategically important island.
Next Week in Switzerland: Trump to Grab the Spotlight Among Global Elite in Davos (Bloomberg)
Donald Trump will address the World Economic Forum next Wednesday, an appearance likely to dominate the annual gathering of the global elite in Davos.
The US president — accompanied by Treasury Secretary Scott Bessent, Secretary of State Marco Rubio and the biggest US delegation ever — will be among more than 60 heads of state and government attending the Jan. 19-23 meeting.
He’ll be there alongside business leaders including Microsoft’s Satya Nadella, Nvidia’s Jensen Huang, Exxon Mobil’s Darren Woods and Alphabet’s Ruth Porat and finance heavyweights such as JPMorgan’s Jamie Dimon and Citadel’s Ken Griffin.
🎙️ Now Live! Dive into the latest episode of the Daily Read Podcast—your smart, AI-driven breakdown of the day’s biggest headlines. Get richer context, sharper insights, and thoughtful analysis that takes you beyond the text. Catch the newest episode on Spotify or
Apple Podcasts today.
Wearable Surge: Meta Seeks to Double Ray-Ban Glasses Output After Surge in Demand (Bloomberg)
Meta and EssilorLuxottica SA are discussing potentially doubling production capacity, to 20 million units or more, for AI-powered smart glasses by the end of this year, in a bid to capture growing demand and head off rivals, according to people familiar with the matter.
Deal Alert: New York City's Broadway Week to Run Top Shows with Two-for-One Tickets (Time Out)
Running from Jan. 20 through Feb. 12, theatergoers can save big with two-for-one tickets at dozens of Broadway’s most popular shows.
Select two-for-one tickets are now available for purchase using the promotional code NYCBW250, while the code NYCUP250 offers buyers the chance to upgrade tickets to better seats for less at a heavily discounted price.
This year, participating productions include 26 classic long-running Broadway musicals, revivals and new shows that have made their way across the pond from London’s West End. Highlights include Chess, a gripping Cold War–era musical, Maybe Happy Ending, a futuristic romance, and Buena Vista Social Club, a joyous tribute to Cuban music and culture. View the full list of offered shows here.
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