Bloomberg Daybreak: US Edition
Greenland Talks Loom Over Davos; Bessent Says Fed Pick Could Come as Soon as Next Week
· Summarized
Key takeaways
- President Trump's ambitions regarding Greenland could escalate tensions with NATO allies and impact international relations.
- The establishment of a 'Board of Peace' for Gaza represents a significant diplomatic effort on the part of the Trump administration amidst complex geopolitical challenges.
- The announcement of the new Federal Reserve chair is imminent, with significant implications for U.S. monetary policy.
Summary
Trump's Greenland Ambitions and Its Implications
President Trump's intention to take control of Greenland became a major talking point at the World Economic Forum. He confirmed conversations with NATO Secretary General Mark Rutte about this ambition, which has raised substantial concerns among NATO allies and prompted backlash from EU leaders like French President Emmanuel Macron. Additionally, Trump announced a 10% tariff on imports from European nations supporting Denmark, heightening tension around this controversial topic.
Formation of Trump's 'Board of Peace' for Gaza
As part of his broader Middle East strategy, President Trump is attempting to establish a 'Board of Peace' focused on Gaza, which has already sparked objections from Israel. The board is designed to bring various world leaders, including controversial figures like Vladimir Putin and Recep Tayyip Erdogan, to collaborate on lasting peace following the conflict in the region. Trump's ambitious 20-point plan aims to address the issues stemming from years of conflict between Israel and Hamas.
Anticipation for New Federal Reserve Chair Announced Soon
Treasury Secretary Scott Bessent indicated that President Trump may announce his pick for the new Federal Reserve chair as soon as next week. The search has narrowed down to four candidates: Rick Rieder from BlackRock, Kevin Hassett from the National Economic Council, Christopher Waller, and former Fed governor Kevin Warsh. This announcement is highly anticipated amid ongoing discussions about economic stability and policy directions.
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Show notes
On today's podcast:
1) President Trump said he will meet with several parties over his ambition to take control of Greenland during the upcoming World Economic Forum. Trump said in a Truth Social post early Tuesday morning that he had a “very good telephone call” with Mark Rutte, the secretary general of NATO, concerning the Danish territory. The remarks came shortly after he restated his desire to take over Greenland, which has spooked NATO allies and prompted stern opposition from EU leaders including French President Emmanuel Macron. Meantime, Trump announced a 10% tariff on goods from European countries rallying to Denmark’s side in his pursuit of Greenland, a dramatic escalation in the standoff that sparked strong pushback from some of the US’s closest allies.
2) President Trump’s so-called Board of Peace for Gaza is beginning to take shape, even as Israel voiced rare objections to parts of the US president’s plan to build on the fragile ceasefire in the region. China has been offered to join the proposed Board of Peace, as Trump heads to Davos to advance his plan for the Palestinian enclave. The US president has invited a range of world leaders, including Russia’s Vladimir Putin and Turkey’s Recep Tayyip Erdogan, to become founding members of the board. It’s part of his 20-point plan to ensure a lasting peace and reconstruction of Gaza, following two years of devastating war between Israel and militant group Hamas in the Palestinian territory. President Trump also confirmed that he invited Russian President Vladimir Putin to join the proposed board.
3) Treasury Secretary Scott Bessent said President Trump could announce his pick for the next Federal Reserve chair as soon as next week, amid intense anticipation over the White House’s search for a new central-bank chief. “We have four fantastic candidates — it will be up to the president, and I would imagine that he will have an announcement maybe as early as next week,” Bessent said in remarks at a press conference Tuesday at Davos, where he is attending the World Economic Forum. The process of picking a successor to current Chair Jerome Powell is seen as a four-person race, with BlackRock Inc.’s Rick Rieder, National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller and former governor Kevin Warsh as the final contenders after a long-search that has been led by Bessent.
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