WSJ What’s News President Trump’s Sudden U-Turn on Greenland
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Jan 21, 2026 
Robbie Grammer, a national security reporter for The Wall Street Journal, shares insights on President Trump's unexpected cooling of rhetoric toward Europe, as he cancels threatened tariffs and shifts his stance on Greenland. Meanwhile, Nick Timiraos, the chief economics correspondent, discusses the Supreme Court hearing regarding Fed governor Lisa Cook, highlighting skepticism about the Trump administration's attempt to dismiss her. The interplay of U.S.-Europe relations and the implications for central bank independence create a fascinating dialogue.
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Sudden U-Turn Calmed Markets, Not Europe
- President Trump shifted from threats to a de-escalation on Greenland and tariffs after claiming a framework with NATO's Mark Rutte.
- European officials remain anxious because the policy can reverse quickly if his mood changes.
COFA Proposal Collides With Sovereignty
- The U.S. proposed a COFA-style Compact of Reassociation modeled on Pacific arrangements to secure defense prerogatives.
- Denmark and Greenland view any plan that undermines sovereignty as an absolute red line and reject selling territory.
Court Leans Toward Protecting Fed Independence
- The Supreme Court hearing over Lisa Cook's attempted firing focused on procedural for-cause questions rather than broad policy.
- Justices signaled reluctance to remove her immediately, preserving Fed independence while the case proceeds.