MPC Morning Call 14th January 2026 – Stocks dragged lower by poor start to earnings from JP Morgan
Stocks were dragged back into negative territory by poor earnings from the worlds biggest bank, JP Morgan, despite a cooling inflation number earlier in the session
WATCH ON YOUTUBE MPC Morning Call 14 th January 2026 – Stocks dragged lower by poor start to earnings from JP Morgan Stocks were dragged back into negative territory by poor earnings from the worlds biggest bank, JP Morgan, despite a cooling inflation number earlier in the session Federal Reserve Chair Jerome Powell confirmed that federal prosecutors had launched a criminal investigation connected to his Senate Banking Committee testimony, but suggested the move was politically motivated, tying it to the Trump administration’s ongoing pressure for steep interest rate cuts. Powell warned that the real issue was the independence of monetary policy and whether decisions would continue to be guided by economic data rather than political interference. His remarks, coming as his term nears its May expiration, triggered a broad market reaction, with the dollar, equities, and Treasury yields all sliding. Former Fed Chair Janet Yellen called the probe “extremely chilling,” warning it signals an attempt by the Trump administration to compromise the central bank’s autonomy. Attention now turns to a jam-packed week for economic data, led by Tuesday’s December Consumer Price Index (CPI) report, which is expected to show stable headline inflation but a slight uptick in core prices. While November’s weaker inflation reading raised hopes that pressures were easing, analysts cautioned that it might have been distorted by last year’s government shutdown. Markets currently expect the Fed to keep rates steady in January as it maintains a high threshold for further cuts, assessing both inflation persistence and economic uncertainty. Alongside CPI, other key indicators such as the Producer Price Index (PPI) and retail sales data will help shape expectations for Fed policy in early 2026. In the corporate arena, major Wall Street banks are kicking off the fourth-quarter earnings season, with JPMorgan Chase, Bank of New York Mellon, Bank of America, Wells Fargo, and Citigroup among the first to report. Investors are watching closely to see if U.S. banks managed to withstand the economic challenges from the 2025 shutdown and geopolitical instability. The financial sector also faces renewed regulatory headwinds after President Trump proposed a 10% cap on credit card interest rates, aiming to protect consumers from what he called “rip-off” rates exceeding 20%. Meanwhile, gold prices have surged to new highs amid investor flight to safety from market turbulence and Middle Eastern unrest, while oil prices have steadied as instability in Iran threatens global supply lines. Corporate Earnings JPMorgan Chase -4.5% - reported fourth-quarter earnings and revenue that topped estimates, but weaker-than-expected performance in its investing banking division just as its acquisition of Apple’s credit-card program weighed on profit. The country’s largest bank posted a fall in profit of 7% after it factored in a previously-disclosed $2.2 billion credit reserve linked to its acquisition of the Apple credit-card program from Goldman Sachs Government Bond Yields Commodities, Energy & FX ASX Overnight: SPI 8779 (+0.01%) The Day Ahead: The ASX is in for a quiet day as commodities took a breather. The banking sector may see some weakness filter through from JPM results overnight The day ahead China Trade data at midday
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