The markets: The dollar rose to another high against DXY, the benchmark index of foreign currencies, after the U.S. jobs report came in way above expectations. With the economy running hotter than everyone thought, investors now suspect the Fed may put more interest rate cuts on hold — and that explains why the S&P 500 fell 1.5% on Friday and why US futures look even gloomier this morning.

Today: More heavy winds are expected in Los Angeles, where fires continue to burn out of control. The official death toll has hit 24 but that is expected to go higher. The fires could be the most expensive disaster in U.S. history, according to Governor Newsom. At a personal level, many people who were banking on the value of their home to provide them with financial security in retirement now have nothing.

CEO Daily insight: An exit interview with the Homeland Security chief

I’m listening to the song City of Stars as I write this, thinking about the devastated lives and landscape of Los Angeles. My heart goes out to everyone impacted by the wildfires, which have killed at least 16 and ravaged an area larger than the city of San Francisco. Gov. Gavin Newsom has vowed to create a “Marshall Plan” to rebuild the city.

The federal government is a critical player in any natural disaster. Specifically, the Federal Emergency Management Agency (FEMA) helps people through disasters. The agency reports up to the U.S. Department of Homeland Security, which also handles border security, anti-terrorism efforts, immigration, and more.

I spoke with outgoing DHS Secretary Alejandro Mayorkas on Friday about what he learned during his tenure, which included an impeachment battle over his handling of immigration — which passed in the House and was dismissed in the Senate. Here are some of his edited remarks:

“We have worked through a number of crises that reflect the diversity of our mission, whether it’s action by the People’s Republic of China, border challenges, global displacement and the migration resulting from it, the COVID-19 pandemic, and the increased severity and frequency of extreme weather events. We met those challenges while improving morale in a department that historically has been last in employee well-being. Last year, we were the most improved large federal department, and this year we’ve done even better.”

“We did that by getting legislation to correct the unfairness of TSA frontline pay, investing in mental health programs, and fostering cohesion among 260,000 personnel across multiple operational agencies and offices. While our budget of a little over $100 billion may seem significant, it’s under-resourced for our mission. Balancing efficiency with securing necessary funding is critical.”

“Our immigration system was last reformed in 1996. Everyone agrees we’re dealing with a broken immigration system and we fundamentally need to fix that system. The maximum number of visas allowed is woefully out of touch with the market. We need to align supply with demand. Look northward to Canada, which calibrates its visa programs year to year, according to market needs. We’re working on a 30-year-old model.”

“The effectiveness of our work is dependent upon our ability to reflect the diversity of the communities we serve. It’s vitally important to reflect the communities and not create distance between those who serve them. There’s a difference between politics and policy. As a department, we are apolitical, but there are political ramifications to the work that we perform. When difficulties arise, one can navigate through them effectively when one has 100% confidence in the integrity of one’s decision making processes, which I have.”

Also on the radar

Bond market tantrum: Yields continue to push higher in the bond market globally, which will make borrowing costs higher for everyone. U.S. mortgage rates are already back up to 7%.

Brian Moynihan speaks: It has been nearly 15 years since he took the top job at Bank of America. He tells the FT he thinks the Trump administration will be broady good news for banks.

Tesla: Dutch pension fund ABP sold a $585 million stake in Tesla in protest over CEO Elon Musk’s pay.

New year, new you, now leave: If you joined the gym in January to honor a resolution to get fit, just remember that the regulars in the gym kinda hate you and are waiting until February when you finally give up and they can have their favorite machines back, according to the WSJ.

From the analysts

Wedbush on Nvidia: The Biden administration’s desire to prevent sales to China is a “concern” for Nvidia, according to Matt Bryson and Antoine Legault writing in a note to clients seen by Fortune. “We would see the implementation of this such a policy as a concern for NVDA, given the likely impact on TAM and revenue growth. At the same time, we would also be surprised if the incoming administration would support any policy that likely looks to restrict sales to Middle East states in particular.”
Jefferies’ Christopher Wood on “wokeism”: “It can legitimately be described as the stampede from wokeism. Since Donald Trump’s decisive electoral victory in November, [we have] noticed a change in behaviour in continuing meetings with investors. Fund managers are increasingly willing to say what they really think, even in the presence of colleagues, on such politically charged issues as ESG (Environmental, Social, and Governance) or DEI (Diversity, Equity, and Inclusion).”

More news below.

Diane Brady
diane.brady@fortune.com
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TOP NEWS

Dimon offers new outlook on his future
JPMorgan Chase Chairman and CEO Jamie Dimon signaled in a new CBS interview that he may stay on as chairman for “a couple years” when he decides to retire as CEO of the Wall Street giant. Dimon also noted that he has not yet picked a successor. Fortune

Zuckerberg slams Apple
In a new appearance on the Joe Rogan Podcast last week, Meta CEO Mark Zuckerberg criticized Apple for not inventing “anything great in a while” and charging app developers 30% on purchases made using Apple systems. "If you just don’t do a good job for like 10 years, eventually you’re just going to get beat by someone,” Zuckerberg warned. Fortune

BofA says rate cuts are over
Bank of America analysts believe the Federal Reserve is already done cutting interest rates after a better-than-expected jobs report was published last week. In fact, the analysts indicated that the “conversation should move to hikes.” Fortune

AROUND THE WATERCOOLER

Is your company’s board ‘Trump friendly’? Meta’s appointment of UFC chief Dana White marks a new era of politicized boardrooms by Lila MacLellan

Trump’s pick for Treasury secretary discloses assets worth at least $521 million, including a home in the Bahamas and S&P 500 ETFs by Jason Ma

Claims about a billionaire couple hurting efforts to fight the LA fires via their ‘control’ of the water supply are false by Paolo Confino

It’s not just Gen X parents in suburbia who are enduring a supercommute: Even DINKS and Gen Z are embracing 5am to 9pm by Chloe Berger

Build-A-Bear’s CEO spends her Fridays penning old-fashioned ‘thank-you’ notes to bolster her $486 million toy empire by Rachel Ventresca

This edition of CEO Daily was curated by Joey Abrams.

DHS Secretary Alejandro Mayorkas: Visa levels are ‘woefully out of touch with the market’