Trump May Announce New Fed Chair by End of January, U.S. May Not Take EU Trade War Threat Seriously

On January 20, U.S. Treasury Secretary Bassett expressed doubt the EU will quickly take a tough stance against Trump’s “Greenland Tariffs.” He predicted the bloc would likely form a so-called “dreadful European working group” rather than act immediately. Bassett noted the 27-member bloc’s slow decision-making would block it from mounting an effective counterattack or quickly deploying its most powerful trade tool: the so-called “counter-coercion instrument.” Speaking to a small group of reporters at the World Economic Forum in Davos, Switzerland, Bassett quipped: “I think they’ll first form that ‘dreadful European working group’—it seems to be their most powerful weapon.” His comments signal Washington doesn’t take seriously the chance the EU will deploy its strongest trade tool, which can restrict U.S. firms’ access to the EU single market once activated. On other matters, Bassett said the next Federal Reserve Chair won’t likely be named during Trump’s trip to Switzerland. “I think it’ll be next week,” he added, hinting the administration plans to announce the pick by the end of January.