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.

The Consumer Financial Protection Bureau is seeking feedback on two proposals that would heighten consumer safeguards with regard to digital payments and currencies. One is aimed at preventing excessive data collection and is targeted mainly at big-tech payment firms. The other is intended to extend antifraud protections to digital payments including those made via digital currencies and on video gaming platforms.

Bank of America's retail customer investments have surpassed $500 billion in assets, over halfway to the bank's target of $1 trillion in five years. The bank introduced its consumer investment business 15 years ago, providing in-person financial advice and online tools. It plans to further increase investment assets as it adds 165 US branches by the end of next year.

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. Citigroup, Goldman Sachs, JPMorgan Chase and Wells Fargo will begin 2025's first earnings season on Wednesday.

The Federal Reserve has approved the $2 billion acquisition of Denver-based Heartland Financial USA by UMB Financial, Missouri's largest bank, which is now poised to expand into five more states, for a total of 13. The all-stock deal, expected to be completed this quarter, will give UMB $65.8 billion in consolidated assets.

American consumers expect inflation to rise significantly over the next year and beyond, with the University of Michigan's survey showing one-year inflation expectations jumping to 3.3% in January. Concerns over potential tariffs and Trump-era economic policies, coupled with a strong labor market, are driving inflation fears and dampening consumer sentiment, while economists expect the Federal Reserve to keep rates steady.

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.