While speaking on the sidelines of the Davos meetings, Rogoff remarked that European leaders are “just frantic” regarding Trump’s rekindled interest in Greenland, labeling it as one of the most destabilizing issues this year.
He further speculated that Trump might leverage the Davos platform to unveil a significant monetary policy announcement, potentially including the appointment of a new Federal Reserve Chair. “It is possible that Trump announces the new Fed Chief at Davos,” Rogoff noted, emphasizing that the notion of Fed independence has become more precarious.
“Neither side of the political spectrum favors Fed independence,” Rogoff cautioned, highlighting that central bankers are pushing back against autonomy even as political pressures mount. He added that Trump regards “a little short-term inflation as a minor cost for winning the midterm election,” pointing out how political motives influence economic strategies.
Despite these worries, Rogoff expressed that he does not foresee inflation “rising sharply” under Trump’s policies. He characterized former Fed Governor Kevin Warsh as a potentially “strong appointment” should he be chosen to head the central bank.
Rogoff pointed out that Trump perceives the forthcoming US midterm elections as an “existential threat,” a consideration that could affect both geopolitical and monetary decisions in the upcoming months.
First Published: Jan 19, 2026 3:57 PM IST
