Episode summary
Stocks Wipe Out CPI-Fueled Gains as JPMorgan Sinks | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · 32 min · Hosts: Carol Massar, Tim Stenovec · Guests: Chris Whalen, Matthew Luzzetti, Savanthi Syth, Eric Weiner, Stuart Paul
Summary
The discussion focused first on the Trump administration’s escalating pressure on the Federal Reserve and what it could mean for markets, the economy, and Fed independence. The guests argued that the legal probe into the Fed’s headquarters renovation is more serious than routine political pressure because it could undermine confidence and complicate Powell’s tenure, even if markets have mostly shrugged it off so far. One guest said investors are discounting the rhetoric because the proposals are unlikely to become law, while another emphasized that mortgage rates and long-term yields can rise when the Fed comes under attack, making the strategy counterproductive for affordability.
The show then turned to Delta’s earnings and the airline outlook. A guest from Raymond James said revenue momentum remains strong, especially in premium travel, but management is being cautious because policy volatility makes a full-year forecast difficult. The conversation highlighted how airlines increasingly rely on credit-card partnerships for cash flow and loyalty economics, while smaller carriers may need to consolidate to compete.
The last segment examined the latest CPI data and bank earnings. Bloomberg Economics said tariff pass-through to consumer prices appears to have peaked, but food prices remain sticky because of weather and supply factors. On JPMorgan, the panel said the bank selloff looked tied more to policy headlines and fee concerns than to a lasting shift in fundamentals.
Key takeaways
- The guests said the DOJ probe into the Fed’s renovation is a more serious threat to independence than ordinary presidential pressure, because it could affect appointments and credibility.
- One guest argued markets are not reacting much because the administration’s credit-card cap and other populist proposals are unlikely to pass Congress.
- Bloomberg Economics said tariff pass-through to core goods inflation has likely peaked, with appliances and used autos no longer showing the same upward pressure.
- The Raymond James guest said Delta’s revenue trend is strong, but the airline is being cautious because policy volatility makes 2026 forecasting harder.
- The airline discussion pointed to growing dependence on premium traffic and credit-card revenue, while smaller airlines may need mergers to gain scale.
Notable quotes
“I think the risk is obviously confidence. It also I think even more importantly risks calling the office of the presidency into uh ridicule”
“taking legal action here is the unprecedented aspect of of what's happening”
“They're not really concerned with the medium and long-term consequences, which is what I think you're really alluding to with your question”
“it does not necessarily mean that the long end of the curve is going to come down as well”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is Bloomberg Business Week Daily, reporting from the magazine that helps global leaders stay ahead with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens. The Bloomberg Business Week Daily podcast with Carol Masser and Tim Stenbec on Bloomberg Radio.
I want to go now here to the Bloomberg Business Week studio and I want to bring in Chris Whan. He's chairman of Whan Global Adviserss. He's co-founder of the Institutional Risk Analytics.
He's co-author and author of many books including Inflated Money, Debt, and the American Dream. And he also worked at the New York Fed in the 1980s. And and that's exactly where I want to start because we did just hear the president making comments in Michigan ratcheting up his pressure on the Fed chief.
He said, "I want a Fed chief to put rates down on good news. When there's good news, the market should go up. When the market goes up, the Fed should lower rates.
This comes after a weekend where I don't need to remind everybody about the pressure that the Fed chair is facing and and what happened and what is happening with this Department of Justice probe. But as somebody who has experience in markets, who has experience at the Federal Reserve, what is the risk to markets here? What is the risk to the economy with the president job owning like this?
I I think the risk is obviously confidence. It also I think even more importantly risks calling the office of the presidency into uh ridicule because you know when when you say things that are clearly not well thought through and when it's obvious that they're not getting the outcome that they say that they want.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- cpi data
- fed rate cuts
- bank earnings
- treasuries
- airline outlook
Companies and tickers mentioned
- JPM
- DB
- DAL
- JPMorgan Chase & Co.
- Deutsche Bank
- Delta Air Lines
Watch the episode
Watch “Stocks Wipe Out CPI-Fueled Gains as JPMorgan Sinks | Bloomberg Businessweek” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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