Squawk Pod: Davos 2026 – Treasury Secretary Scott Bessent

Episode Date: January 21, 2026
Host: Joe Kernan
Guest: U.S. Treasury Secretary Scott Bessent
Location: World Economic Forum, Davos, Switzerland

Episode Overview

This episode features an in-depth conversation with U.S. Treasury Secretary Scott Bessent, recorded at the 2026 World Economic Forum in Davos. Secretary Bessent discusses the Trump administration’s global economic strategy, controversies around U.S. foreign policy toward Greenland, looming tariffs and potential trade retaliation, the Federal Reserve Chair nomination, critique of defense contractors, and proposals to cap credit card interest rates. The tone is candid, sometimes combative, and always focused on asserting American economic strength and leadership on the world stage.

Key Discussion Points & Insights

1. U.S. Policy on Greenland and NATO Burden-Sharing

• The Trump administration continues efforts to acquire Greenland due to its strategic importance, especially for missile defense (“Golden Dome” project).
• Bessent emphasizes the U.S.’s disproportionate NATO spending and expresses frustration that allies have not shared the defense burden.
• Quote (05:39):
  Bessent: “I think it’s a complete canard... the U.S. has been trying to acquire Greenland... for 150, 160 years. This is not something new, Joe.”
• The expectation is that negotiations will remain diplomatic, despite Trump's characteristic “shock and awe."

Timestamps:

• Greenland controversy: [04:24–07:09]
• U.S. defense spending stats: [06:15]

2. Warnings Against Escalation and Market Reactions

• Bessent repeatedly calls for calm, especially in light of market reactions to U.S. moves: “Do not escalate. And President Trump has a strategy here. Hear him out and then everything will be fine.” ([01:03], [09:13])
• Media and European responses to U.S. policy are characterized as “hysterics.”
• Recent U.S.-led critical minerals summit signals intent to secure supply chains and reduce reliance on China.

Timestamps:

• Call for calm: [01:03], [09:13]
• Critical minerals summit: [07:09–08:16]

3. Economic Performance Under Trump

• The U.S. economy is touted as the world’s strongest, with record stock market highs, low unemployment, and robust GDP growth (~8% last quarter).
• Major legislative achievements:
  • “One big, beautiful bill” (July 4th) on corporate expensing, tax relief for working Americans, and record tax refunds.
  • Unprecedented capex boom (+12%).
• Quote (10:18):
  Bessent: "He’s done peace deals, trade deals, and tax deals... No tax on tips, no tax on overtime, no tax on Social Security... We’re going to see record tax refunds coming out in the fourth quarter for working Americans."
• Deficit reduction:
  • Deficit to GDP down from 6.9% (2024) to a projected 3% by year-end, fueled in part by tariff income.

Timestamps:

• Economic boast and policy: [09:32–12:15]
• Deficit progress: [12:15–12:56]

4. Federal Reserve Chair Search & Critique

• President Trump is set to announce his nominee for Fed Chair soon—down to four strong candidates.
• Bessent voices disapproval of current Fed Chair Jay Powell’s decision to attend Supreme Court hearings, implying it undermines the Fed’s independence.
• Strong criticism of the Fed’s transparency and accountability:
  • Several resignations among Fed governors due to ethics issues.
  • Concern over $100 billion annual losses from asset mismanagement.
• Quote (15:28):
  Bessent: “That independence does not mean lack of accountability. The Fed has a special obligation to the American people... They are unelected... They print their own money... just print more money.”
• Suggests the next Fed chair should emulate Alan Greenspan’s “let the economy run hot” philosophy due to a perceived new productivity boom.

Timestamps:

• Fed Chair nomination process: [13:00–14:10]
• Critiques of the Fed: [14:55–16:14]
• Productivity boom/Greenspan reference: [17:09–18:36]

5. Defense Contractors & Credit Card Interest Caps

• The administration’s hard line on defense contractors: likens them to systemically important banks, criticizes buybacks instead of investment, moots curbs on buybacks/dividends until contract backlogs are fixed.
• Quote (19:22):
  Bessent: “They exist at the pleasure of the United States of America. They exist to serve our national defense. And they have failed... buying back substantial portions of stock rather than building new facilities. So I think it is a good idea to bring them to heel.”
• On capping credit card interest rates (10% proposal), acknowledges unusual policy alignments with Senator Elizabeth Warren, but draws a sharp contrast to her regulatory history.
• Quote (21:16): Bessent: “She wants to control credit... But everything she has done has been the opposite. But again, I think it is not unreasonable to have a discussion on the practices of these credit card companies.”

Timestamps:

• Defense contractors: [18:36–20:43]
• Credit cards/Warren: [20:43–22:03]

6. American Leadership & the “Davos Syndrome”

• Bessent dismisses “Davos syndrome” (the notion of going native in the world of internationalist elites), reasserts “America First” is not “America alone.”
• Quote (22:20):
  Bessent: “America first does not mean America alone. And I think I will not have Davos syndrome.”

Timestamps:

• Wrap-up/cultural commentary: [22:03–22:33]

Notable Quotes (with Speaker Attribution & Timestamps)

• Scott Bessent ([05:39]):
  “...the U.S. has been trying to acquire Greenland... for 150, 160 years. This is not something new, Joe.”

• Scott Bessent ([10:18]):
  “He’s done peace deals, trade deals and tax deals... and we’re going to see record tax refunds coming out in the fourth quarter for working Americans.”

• Scott Bessent ([15:28]):
  “That independence does not mean lack of accountability... They print their own money... just print more money.”

• Scott Bessent ([19:22]):
  “They exist at the pleasure of the United States of America. They exist to serve our national defense. And they have failed... buying back substantial portions of stock rather than building new facilities.”

• Scott Bessent ([21:16]):
  “But again, I think it is not unreasonable to have a discussion on the practices of these credit card companies.”

Important Segment Timestamps

• Greenland/Defense/NATO: [04:24–07:09]
• Critical Minerals/Markets: [07:09–08:16]
• Economic Report Card: [09:32–12:15]
• Deficit Reduction: [12:15–12:56]
• Fed Chair/Monetary Policy: [13:00–18:36]
• Defense Contractors & Credit Card Caps: [18:36–22:03]
• Final Reflections (Davos Syndrome/America First): [22:03–22:33]

Memorable Moments

• Bessent’s repeated, almost mantra-like call to “Do not escalate. President Trump has a strategy here. Hear him out and then everything will be fine.” ([01:03], [09:13])
• Sharp criticism of the Fed’s lack of transparency and the massive losses under Powell’s tenure.
• Blunt assessment of defense contractors: “They have failed. They are seven, many of them five to seven years behind on their deliveries.”
• Teasing the “Davos syndrome” and resisting it, affirming U.S. exceptionalism even at a globalist venue.

Conclusion

This episode provides a wide-ranging, unfiltered window into the Trump administration’s priorities at the start of 2026: economic nationalism, tough bargaining with allies, skepticism toward traditional “free market” orthodoxy, and demands for accountability from both domestic institutions and multinational corporations. Bessent, clear and assertive, leaves no doubt about where U.S. policy stands, nor where he believes global leadership should come from.

Suitable for listeners seeking:

• Rapid updates on U.S. economic and foreign policy
• Behind-the-scenes policy debates at Davos
• Insider takes on the Federal Reserve and financial regulation
• Direct, unapologetic statements of America’s evolving global role