Veteran economist Ken Rogoff said he has “never seen Europeans so upset” in his 25 years at the World Economic Forum, pointing to rising alarm over former US President Donald Trump’s recent geopolitical and monetary policy signals.Speaking on the sidelines of the Davos meetings, Rogoff said European leaders are “just hysterical” about Trump’s renewed focus on Greenland, calling it one of the most destabilising flashpoints this year.
He also suggested Trump could use the Davos platform to make a major monetary policy announcement, including the possibility of naming a new Federal Reserve Chair. “It is possible that Trump announces the new Fed Chief at Davos,” Rogoff said, noting that the issue of Fed independence has become increasingly fragile.
“Neither side of the political aisle likes Fed independence,” Rogoff said, warning that central bankers are defending autonomy even as political pressure intensifies. He added that Trump views “a little short-term inflation as a small price to pay for winning the midterm election,” underlining how political calculations are shaping economic strategy.Despite these concerns, Rogoff said he does not expect inflation to “rise dramatically” under Trump’s policies. He described former Fed Governor Kevin Warsh as a potentially “strong appointment” if selected to lead the central bank.
He also suggested Trump could use the Davos platform to make a major monetary policy announcement, including the possibility of naming a new Federal Reserve Chair. “It is possible that Trump announces the new Fed Chief at Davos,” Rogoff said, noting that the issue of Fed independence has become increasingly fragile.
“Neither side of the political aisle likes Fed independence,” Rogoff said, warning that central bankers are defending autonomy even as political pressure intensifies. He added that Trump views “a little short-term inflation as a small price to pay for winning the midterm election,” underlining how political calculations are shaping economic strategy.Despite these concerns, Rogoff said he does not expect inflation to “rise dramatically” under Trump’s policies. He described former Fed Governor Kevin Warsh as a potentially “strong appointment” if selected to lead the central bank.
Rogoff noted that Trump sees the upcoming US midterm elections as an “existential threat,” a factor that could influence both geopolitical and monetary decisions in the months ahead.
First Published: Jan 19, 2026 3:57 PM IS
