Squawk on the Street SOTS 2nd Hour: Semis Surge, Fmr. Treasury Secretary Lew & The Big Banks Breakdown: Day 2 1/15/26
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Jan 15, 2026 Jack Lew, former U.S. Treasury Secretary and Columbia University professor, offers critical insights into the DOJ investigation into Fed Chair Powell, emphasizing the importance of Fed independence for economic stability. He discusses the potential risks of politicizing the Fed, warning it could undermine credibility. The conversation also touches on U.S.-Iran tensions, with Lew analyzing the resilience of Iran's regime amid protests and the implications of recent Treasury sanctions aimed at the country's shadow banking system.
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Labor Market Shows Unexpected Strength
- Jobless claims dropping below 200,000 signals a resilient labor market, contradicting recession fears.
- Markets priced this as less need for Fed easing, lifting short-term yields and strengthening the dollar.
TSMC Confirms Long AI-Cycle
- TSMC's results and $100B multi-year capex plan confirm sustained AI-driven chip demand.
- Equipment makers like ASML and suppliers stand to benefit for years as capacity builds.
Position For Higher-Rate Risks
- Favor short-duration equity exposures like dividend-paying stocks if rates rise or inflation surprises.
- Consider non-U.S. exposure where valuation opportunities may mirror the 2010 post-crisis setup.