Yahoo Finance Yahoo Finance Sign in Search query Search for news or symbols Yahoo Finance JPMorgan consumer banking boss Marianne Lake on Trump, the Fed and 2025 David Hollerith David Hollerith · Senior Reporter Sun, December 15, 2024 at 8:00 PM GMT+6 4 min read In This Article: GS -1.04% JPM -0.66% Investment Services That Might Get You Huge Profits in 2024 (Here's The List) Investment Broker Centre | Search Ads Ad Marianne Lake runs JPMorgan Chase's (JPM) sprawling consumer banking operations, making her one of the most powerful people in the industry. She is also one of the frontrunners to succeed CEO Jamie Dimon when the longtime boss decides to stop running the nation's largest bank. Lake stepped into the spotlight this past week at Goldman Sachs (GS) financial services conference in Manhattan, giving investors a bullish update about the bank's fourth quarter performance (investment banking fees will be up 45%) and 2025 (a key revenue source will be $2 billion more than expected). JPMorgan's CEO of consumer and community banking told investors there were "reasons to be optimistic" about 2025, a sentiment that many others in her industry echoed this past week as they cheered the incoming Trump White House. The CEO of Consumer and Community Banking, Marianne Lake poses for portraits at the JP Morgan headquarters in New York City, U.S., July 2, 2024. REUTERS/Kent J. Edwards Marianne Lake, JPMorgan's CEO of consumer and community banking, at the JPMorgan headquarters in New York City. REUTERS/Kent J. Edwards · REUTERS / Reuters The hope is that lending and dealmaking churn higher while a new Republican administration loosens some rules for banks and applies more leniency in approving the sort of corporate mergers that produce big profits for Wall Street giants. Read more: How do banks make money? Banks are also hoping that a new administration would think twice about a new set of controversial capital rules proposed by top bank regulators that would require lenders to set aside greater buffers for future losses. Lake, who is 55 years old, went into more detail about her outlook in a conversation with Yahoo Finance, covering a number of topics that are front of mind for her industry. Regulation Lake has not been shy in the past about expressing her concern with pending regulation and legislation that she and others argue will harm banks and their customers. Along with the proposal that could increase bank capital requirements, she cited three specific examples this week of rules or legislation that are of concern. One reduces debit card fees, one reduces debit card interchange fees, and one makes it simpler for customers to transfer their personal data between banks. The day after she spoke, the Biden administration released another new rule opposed by banks: a $5 cap on bank overdraft charges imposed by the CFPB. It quickly resulted in a lawsuit from bank lobbying groups. FILE PHOTO: Signage is seen at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., May 14, 2021. REUTERS/Andrew Kelly/File Photo The Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C. REUTERS/Andrew Kelly/File Photo · Reuters / Reuters She does expect there is an opportunity with the new administration to reverse some of these proposals. When it comes to the "onslaught of new regulatory constraints," Lake told Yahoo Finance, "we’re optimistic about the opportunities for collaboration between the business community and the new administration." Trump 2.0 Some economists are worried that the policies of Trump 2.0 will prove to be inflationary, adding to persistent pricing pressures. Lake said the bank shares the general consensus view that tariffs and trade policy will have an impact and Trump’s stance toward China will be tougher. "Our central case is that it will have an impact on inflation," but "it's more of a headwind than it is a derailer." There may be "second-order consequences" in extra costs for consumers and on employment. "But we think those will be more modest." U.S. President-elect Donald Trump appears on the 2024 Person of the Year cover of TIME, in this handout image. TIME/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. NO RESALES. NO ARCHIVES U.S. President-elect Donald Trump appears on the 2024 Person of the Year cover of TIMW. TIME/Handout via REUTERS · via REUTERS / Reuters The Fed, a soft landing, and rates Lake sounded optimistic about the economic picture, citing the ability of the central bank to avoid a recession while bringing inflation down. The Federal Reserve is expected this coming Wednesday to lower rates for the third consecutive meeting, as it shifts to an easing of monetary policy while (thus far) avoiding a recession. “As we sit here today, we believe that the Fed has engineered, at least possibly, a soft landing,” she told Yahoo Finance. Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards