US Treasury Secretary Scott Bessent recently spoke to CNBC on a set of key issues including America’s global stance, including Greenland, tariffs and the upcoming Federal Reserve leadership decision.
He said President Donald Trump is sending a message to the world that “the US is back,” at a time when tensions are rising over Trump’s renewed push to acquire Greenland. Speaking from the World Economic Forum in Davos, Bessent said, “The US is back, and this is what US leadership looks like.”
Bessent on Greenland issue
He called US control of Greenland “important,” as it could help prevent future conflict, saying, “That will stop any kind of a kinetic war, so why not pre-empt the problem before it starts?”
His comments come as Denmark sends additional troops to Greenland for military exercises and as Trump’s remarks unsettle allies within NATO.
Europe, defense spending and tariffs
Bessent criticised European governments, saying they should contribute their “fair share” to defense. “While the Europeans were building schools, having healthcare, we have been defending the world,” he told CNBC.
He mocked Europe’s expected response to Trump’s tariff threats, claiming that leaders would form “the dreaded European working group.” Tensions escalated after Trump announced 200% tariffs on French wines and Champagne and criticised the UK for handing sovereignty of the Chagos Islands to Mauritius.
Bessent on Fed chair pick
Bessent revealed that Trump is close to nominating the next chair of the Federal Reserve, with a decision possible as soon as next week, as current Chair Jerome Powell approaches the end of his term. He was defending the Fed’s independence and said “The independence does not mean lack of accountability,” pointing to multiple ethics-related resignations under Powell’s leadership. He also said it was “not unreasonable to have a discussion” about credit card company practices, which is similar to Trump’s view that “the poorest members of society shouldn’t pay the most.”
Bessent on Russia-Ukraine war
On Ukraine, Bessent accused Europe of undermining its own position by continuing to buy Russian energy. “They are still buying Russian energy, they’re still buying refined products from India made from Russian oil, so four years in, the Europeans are still financing the war against themselves,” he said on CNBC. Europe remains the largest buyer of Russian LNG, even as new EU sanctions on products made from Russian oil are set to take effect.
Europe’s “free riding”
Bessent also took aim at high US drug prices, accusing Europe of benefiting unfairly. He said European countries have been “free riding” on lower medication costs while Americans pay more. Referring to recent agreements by major pharmaceutical companies to cut US prices, he said, “The idea here is equalisation over time, the US consumer and our health services will pay less and the Europeans have to pay more.”