Squawk on the Street SOTS 2nd Hour: More Powell Probe Fallout, CPI Market Impact, & Bank Earnings Breakdown 1/13/26
Jan 13, 2026
Julian Emanuel, Senior Managing Director at Evercore ISI, shares insights on market volatility and inflation trends. Former Barclays CEO Bob Diamond discusses bank earnings, praising the current banking environment and the potential for consolidation. They delve into the implications of the DOJ investigation into Fed Chair Powell and its impact on market sentiment. The discussion also touches on the role of AI in enhancing financial services efficiency and the importance of Fed independence amidst ongoing policy risks.
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Investigation Could Backfire On Markets
- The DOJ probe into Fed Chair Jay Powell risks backfiring politically and market-wise as bipartisan criticism mounts.
- Carl Quintanilla warns continued pursuit could create real market problems and overhang risk.
Complacency Is The Bigger Market Risk
- Julian Emanuel expects three Fed rate cuts this year and sees underlying earnings and stimulus supporting higher markets.
- He warns low volatility and complacency will create near-term uncertainty and episodic shocks.
Require Revenue Proof From AI Bets
- Corporate America must prove AI delivers revenue and cost savings or face competitive disadvantage.
- Investors should watch companies' AI-driven revenue proof points before assuming sustained outperformance.