During the annual World Economic Forum in Davos, Scott Bessent emerged as a remarkably influential figure. His presence was felt across various events, where he took center stage in discussions that highlighted significant economic policies under President Donald Trump. Notably, during one press conference, the Treasury Secretary dismissed Denmark as “irrelevant” in the context of Trump’s controversial desire to acquire Greenland, further illustrating the administration's brash approach to international relations.
In a pointed exchange, Bessent mocked California Governor Gavin Newsom, who criticized him for being “smug.” Bessent, however, stood firm in his defense of Trump’s ambitions regarding Greenland, claiming its acquisition was vital for national security. In a CNBC appearance, he accused Federal Reserve Chairman Jerome Powell of attempting to undermine Trump’s policies, reflecting the high-stakes environment of economic governance under Trump.
During a panel discussion with Fox News' Maria Bartiromo, Bessent advised European officials and investors not to overreact to Trump's tariff threats regarding Greenland. “I’d tell everyone to sit back, take a deep breath — do not retaliate,” he emphasized, seeking to calm market jitters.
Bessent's ubiquitous presence at Davos highlighted his dual role within the Trump administration. Publicly, he acts as a staunch supporter of Trump’s unpredictable policy decisions. Privately, however, he functions as an intermediary, tasked with maintaining market stability amid the administration's erratic announcements. A source familiar with Bessent noted, “He views the markets and their stability as a huge part of his job.” This balancing act is critical, especially in an administration marked by volatility.
On Wall Street, Bessent is regarded as an essential voice for investors, particularly in navigating the turbulence resulting from Trump’s policies. Art Hogan, chief market strategist at B. Riley Financial, commented on Bessent’s role, noting that “the best you can hope for is to contain [Trump].” Despite some of Bessent’s statements raising eyebrows, his influence remains significant in reassuring investors during periods of uncertainty.
At Davos, Bessent not only defended Trump’s economic policies but also framed the proposed Greenland acquisition as a strategic maneuver rather than a mere real estate whim. By urging European allies to remain calm in the face of tariff threats, he shifted the Treasury's role from a stabilizer to an active enforcer of the “Trump Model.”
Bessent's approach marks a stark departure from the cautious communication strategies of his predecessors. He has adopted a persona that blends investment strategy with a MAGA-aligned outlook, reminiscent of segments from Steve Bannon’s “War Room.” This strategy emphasizes the importance of disregarding “media hysteria” and compelling global partners to take Trump at his word, even when the president’s commitments have fluctuated.
The Treasury Department did not respond to requests for comment regarding Bessent’s statements and strategy during the forum.
Throughout his recent speeches, Trump frequently mentioned Bessent, highlighting his integral role in shaping the administration’s economic narrative. In a speech in Detroit, Trump referenced Bessent 11 times, and he reiterated his admiration for Bessent’s unwillingness to step down from his position, even amid speculation about the Fed chair nomination.
As tensions escalated over Denmark's refusal to sell Greenland, Trump threatened to impose a 10% tariff, leading to a drop in the stock market. Bessent took on the responsibility of conveying the U.S. position on Greenland during his time in Davos. His public engagements included multiple TV interviews, press conferences, and discussions aimed at reassuring investors and diplomats alike.
His comments about Denmark’s investments in U.S. Treasury bonds were particularly striking, as he dismissed their significance, stating, “Denmark’s investment in US Treasury bonds — like Denmark itself — is irrelevant.” This statement illustrated Bessent's confidence and willingness to challenge European allies directly.
Behind the scenes, Bessent met with Chinese officials and was considered one of the most sought-after members of the U.S. delegation at Davos. He urged European counterparts to “take a deep breath” and remain calm, reminding them of the stock market's resilience in the face of previous Trump tariff threats.
As the week progressed and Trump backed off from his tariff threats, the markets began to stabilize, affirming Bessent’s earlier message about maintaining composure during turbulent times.
As Bessent prepares to lead the search for a new Fed chair, he faces the challenge of managing expectations from both Wall Street and Trump. His approach has been characterized by neutrality, presenting a range of candidates without showing a clear preference, a strategy informed by lessons learned during the previous administration.
Trump’s ongoing criticisms of Powell, combined with a recent DOJ investigation into the Fed, add to the complexities Bessent will have to navigate. Observers note that the pressure on Bessent is likely to increase as the search progresses, with potential consequences for his standing within the administration.
In a candid reflection during an appearance on Bannon's podcast, Bessent remarked, “Trump years are like dog years; I feel like I’ve aged seven years, but it’s been worth it.” This statement encapsulates the unique and often tumultuous experience of serving in the Trump administration.