Balance of Power Trump Presses NATO on Greenland at Davos
Jan 21, 2026
Lael Brainard, former Vice Chair of the Federal Reserve, dives into the implications of central bank independence and critiques Trump's economic claims at Davos. She discusses the challenges of housing supply and cautions against politicizing the Fed. Derek Decloet, Bloomberg’s executive editor for Canada, shares insights on Canadian reactions to Trump's Greenland proposal and his NATO remarks, revealing unease about U.S. policy directions amidst broader Canada-U.S. relations.
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Court Questions Limits On Firing Fed Governors
- The Supreme Court heard arguments over whether President Trump can fire Fed Governor Lisa Cook for cause.
- Justices expressed skepticism and concern about impacts on Fed independence and economic credibility.
Politicizing The Fed Risks Higher Inflation
- Lael Brainard warned that politicizing the Fed risks undermining its credibility and raising inflation expectations.
- She said actions like investigating the Fed chair criminally have alarmed markets and senators alike.
Growth Is Real But Jobless And Inflation Persists
- Brainard challenged Trump's claims that inflation is defeated and growth is extraordinary.
- She said growth is driven by private-sector AI gains while jobs growth has slowed and inflation remains near 3%.