Finance Minister Bessent speaks at Davos: EU trade retaliation capability is underestimated; the Federal Reserve Chair candidate will be revealed by the end of the month.

LiquiditySurfer · 2026-01-20T07:30:12+00:00

U.S. Treasury Secretary Janet Yellen said at Davos that the European Union has been slow and inefficient in responding to Trump's trade policies. She believes the EU is unlikely to effectively deploy anti-coercion tools, possibly first forming a working group to discuss rather than acting swiftly. Additionally, she revealed that the Federal Reserve Chair candidate will be announced next week.

LiquiditySurfer

2026-01-20 07:30:12

Abstract generation in progress

【BlockBeats】The recent voices coming from Davos are quite interesting. U.S. Treasury Secretary Janet Yellen openly stated during the World Economic Forum: the EU reacts slowly and can’t come up with anything substantial.

What exactly did she say? She predicted that when facing Trump’s trade policies, the EU is most likely to first establish a working group to meet and study, rather than taking swift action. The implication is—these 27 member countries sit together, and the efficiency is too low, the coordination costs are too high.

Yellen’s point of satire here is: she believes that the EU’s strongest trade tool, the “Counter-Coercion Tool,” is unlikely to be effectively utilized. If this tool is truly activated, it could significantly restrict American companies from entering the European single market. But in her view, the EU’s decision-making mechanism will delay the entire counterattack process.

She even said, “I think they will first establish that working group, which seems to be their most powerful weapon”—this sounds like she’s saying: rather than fighting head-on, the EU prefers to discuss first in meetings. This somewhat reflects Washington’s judgment of the EU’s trade retaliation capabilities.

Additionally, it is worth noting that Yellen also revealed the timetable for the announcement of the Federal Reserve Chair candidate. She stated that the next Fed Chair candidate will not be announced during Trump’s visit to Switzerland, but “will be next week”—implying a result before the end of January. This is also an important signal for managing expectations in the financial markets.

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RamenDeFiSurvivor

· 14h ago

The EU's 27 countries meeting can really be a spectacle, honestly, their efficiency is worrying. Working groups stacking on top of each other, by the time that happens, the US will have already made its next move. To be honest, although Bessent's words are harsh, they do hit the EU's pain points... If you ask me, anti-coercion tools are just sitting there as decorations. 27 member states trying to act in unison? Dream on, brother. The EU's response is indeed slow, but don't underestimate them. When they’re really desperate, they can still take action. If this trade war continues, it’s all about who can hold out longer. Anyway, I find it quite interesting.

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DegenWhisperer

· 14h ago

The 27 EU countries meeting can argue all night, and Bessent's sarcasm is quite harsh. The working group for the EU is like a pump-and-dump scheme for retail investors—done or not, it makes no difference. This guy is right—such poor efficiency and still trying to counterattack, it's hilarious. Anti-coercion tools sound impressive, but in reality, they're just a showpiece. When the Americans bully the EU, they just give in—can't even coordinate among dozens of countries. Forming a working group is the EU's ultimate move? That's really enough. This decision-making speed is even faster than the issuance speed of black market coins. The grand show of 27 countries ends up being just a meeting showcase.

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LiquidityHunter

· 14h ago

The 27 EU countries are holding meetings to discuss meetings, the efficiency is truly remarkable haha --- Bessent's words are really hitting the mark, saying that working groups are the strongest weapon? LOL --- The Americans have clearly identified the EU's pain points, with each country having its own small schemes --- The anti-coercion tools are just there for show, the key is still having someone who can make decisions --- This is the advantage of unification, one decision vs. 27 countries bickering --- It feels like the EU has been pressed to the ground and rubbed, the trade war really needs to speed up --- The working group forms a working group to study the working group, I am too familiar with this routine --- So it still depends on who the new Federal Reserve Chair is, that’s the real focus

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SchrodingerWallet

· 14h ago

Haha, the EU's efficiency is truly remarkable. It takes forever for 27 countries to hold a meeting. Really? Just forming a working group is enough to drag things out for half a year... Bessent's words are so piercing, directly exposing the EU's pain points. Is a working group their ultimate weapon? That's hilarious, America is definitely winning. This is why decision-making efficiency is truly the real productivity. The EU's process should have been changed long ago; it simply can't keep up with the pace. Honestly, coordinating 27 countries is not as fast as one person making quick decisions... It turns out that even the strongest tools can't be used, the EU is just creating self-imposed constraints. Truly impressive, a single working group can sentence the EU's countermeasures to death. Bessent's information warfare was well executed, thoroughly exploiting the EU's weaknesses.

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