Banks are preparing to release earnings amid a challenging backdrop, including a strong jobs report that has raised inflation concerns and the Federal Reserve's cautious stance on interest rate cuts. Despite the uncertainty, analysts remain optimistic about a revival in dealmaking, which could boost results in 2025. BlackRock, Citigroup, Goldman Sachs, and JPMorgan Chase kick-off earnings on Wednesday.

The upcoming earnings season is being viewed as crucial for reviving the stock market rally that has lost momentum since the presidential election. With the Federal Reserve unlikely to cut interest rates soon, corporate earnings growth becomes a key focus for investors. Analysts expect a 12% profit increase for S&P 500 companies, marking the largest year-over-year gain since late 2021.

JPMorgan Chase CEO Jamie Dimon remains cautiously pessimistic about the future of the economy despite positive indicators such as low unemployment and a strong stock market. Dimon thinks there are "a lot of legitimate concerns that Americans have. For example, ineffective government, they're angry about it. They're angry about immigration. There are people with legitimate issues," he said.

Bank of America CEO Brian Moynihan has led the bank for 15 years with a focus on "responsible growth", a strategy aimed at stabilizing the bank post-financial crisis. Moynihan has avoided risky ventures, prioritizing a balanced approach to risk management. His leadership style is characterized by a steady, cautious approach, which has helped BofA grow to a market capitalization of $350 billion, making it the second-largest bank in the US.

FDIC Vice Chair and potential Trump pick to lead the agency, Travis Hill, has outlined his vision for a lighter regulatory approach, focusing on reducing compliance burdens, revisiting Basel III capital rules, and fostering innovation in fintech and digital assets. Hill called for an end to climate-focused financial policies, and advocated for clear, timely guidelines for emerging technologies.

Scott Bessent, President-elect Donald Trump's nominee for Treasury secretary, is planning to divest from funds and investments to avoid conflicts of interest, according to a disclosure to the Office of Government Ethics. Bessent, who has more than $700 million in assets, will resign from Key Square Group and other positions if confirmed.

Former Federal Reserve Vice Chair Randal Quarles says the central bank's independence will not be threatened under President-elect Donald Trump. "There's a fair bit of misunderstanding about what Fed independence is. Fed independence doesn't mean that the president can't express a view on Fed policy," Quarles said.

China has intensified efforts to stabilize the yuan, which is near a record low against the US dollar, by adjusting capital controls and pledging to crack down on market disruption. The People's Bank of China has allowed more overseas borrowing and issued a stronger-than-expected daily reference rate.