Trump Cites Greenland Framework, Stocks Surge, More

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Karen Moskow 0:00
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Nathan Hager 0:28
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Doug Krisner 0:34
News when you want it. With Bloomberg News Now, I'm Doug Krisner. President Trump will refrain from imposing tariffs on goods from those European nations opposed to his efforts to take possession of Greenland. Today, in a post on Truth Social, Trump cited the framework of a future deal reached with NATO. Now, the post followed a meeting with NATO Secretary General Mark Rutte at the World Economic Forum in Davos. Afterwards, Trump spoke with reporters.
Jamie Dimon 1:01
It's a long-term deal. It's the ultimate long-term deal. I think it puts everybody in a really good position, especially as it pertains to security and minerals.
Doug Krisner 1:12
Now, the New York Times is reporting the discussions on a framework included a compromise in which Denmark would give the US sovereignty over small pockets of the territory's land for construction of military bases. Now, Trump's remarks on Greenland sparked a rally in stocks, bonds, and the dollar. Small cap shares outperformed, with the Russell 2000 jumping 2%. The S&P 500 picked up nearly 1.2% today, wiping out its drop for all of this year. We got reaction from Allison McCartney. She is Managing Director for Wealth Management at UBS Financial Services.
Allison McCartney 1:47
There seems to be or markets are telling us that this was a lot of noise. We happen to be doing this I think nicely in an earnings season which is going extremely well and underpinning the fact that this bull market that began in late 2022 the things that are motivating it and sustaining it have not changed in the last 48 hours.
Doug Krisner 2:11
Allison McCartney from UBS Alignment Partners. The Supreme Court seems wary of President Trump's effort to fire Fed Governor Lisa Cook over unproven allegations of mortgage fraud. Today, the high court heard arguments and Trump's own appointees were among the skeptics. Justice Brett Kavanaugh said the president's position would weaken, if not shatter, the independence of the Fed. We got reaction from former Fed Vice Chair Lael Brainard.
Lael Brainard 2:38
Well, look, I think what Justice Kavanaugh got to in his questioning, which is if a governor can be fired without any hearing, without any due process, without any real establishment of for cause, it really fundamentally means that the American economy is can be in for higher inflation, less credibility on the part of the central bank, because that is what central bank independence is so important.
Doug Krisner 3:10
That is former Fed Vice Chair Lael Brainard.

What is the significance of Trump's Greenland framework?

Doug Krisner 3:13
Incidentally, the Supreme Court is set to issue a ruling in this case by July. The notion of Fed independence was brought up repeatedly by all parties during oral arguments in the Lisa Cook case, but for Kevin Hassett, the director of the National Economic Council, The Fed crossed the line of being independent when Chair Powell warned about the impact of President Trump's tariffs. for sure you want to talk about inflation, but precisely then, right when President Trump's coming in and setting his tariff agenda, to have the Fed criticize him so vehemently, I think is inconsistent with the desire for independence. Kevin Hassett speaking there to Bloomberg on the sidelines of the World Economic Forum in Davos, Switzerland.
Doug Krisner 3:52
Also in Davos, President Trump said he's going to ask Congress to cap credit card interest rates at 10% for one year. Trump said the move would help millions of Americans save for a home. However, many bank executives are against the idea. Here is JPMorgan Chase CEO Jamie Dimon speaking in Davos.
Jamie Dimon 4:12
It would be an economic disaster. And I'm not making up because our business, you know, we would survive it, by the way.

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