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Trump May Announce New Fed Chair by End of January, U.S. May Not Take EU Trade War Threat Seriously
BlockBeats News, January 20th, U.S. Treasury Secretary Bassett is not optimistic about the EU's ability to swiftly respond to Trump's "Greenland Tariffs" with a tough stance. He predicted that instead of taking immediate action, the EU is more likely to establish a so-called "dreadful European working group."
Bassett suggested that this group of 27 member countries has low decision-making efficiency, which will hinder its ability to mount an effective counterattack or swiftly deploy its most potent trade tool — the so-called "counter-coercion instrument."
Attending the World Economic Forum in Davos, Switzerland, Bassett quipped to a small group of reporters, "I think they will first establish that 'dreadful 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, once activated, can restrict U.S. companies' access to the EU single market.
On other topics, Bassett 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," Bassett said, hinting that the government plans to announce this decision by the end of January.
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