Trump may announce the new Federal Reserve Chairman by the end of January, and the US may not be taking the potential trade war with the EU seriously.
BlockBeats News, January 20, U.S. Treasury Secretary Bessent is not optimistic about the EU's ability to quickly respond strongly to Trump's "Greenland tariffs." He predicted that instead of taking swift action, the EU is more likely to set up a so-called "terrifying European working group."
Bessent implied that the decision-making efficiency of this group of 27 member states is low, which will hinder its ability to organize an effective counterattack or quickly deploy its most powerful trade tool—the so-called "anti-coercion instrument."
While attending the World Economic Forum in Davos, Switzerland, Bessent sarcastically told a small group of reporters: "I think they will first set up that 'terrifying European working group,' which seems to be their most powerful weapon." These remarks indicate that Washington does not take seriously the possibility of the EU deploying its strongest trade weapon, which, if activated, could restrict U.S. companies from entering the EU single market.
On other topics, Bessent stated that the next Federal Reserve Chair is unlikely to be announced during Trump's visit to Switzerland. "I think it will be next week," Bessent said, suggesting that the government plans to announce the decision by the end of January.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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