How a fiery Scott Bessent calmed market nerves over Greenland

Scott Bessent was everywhere in Davos.

At one press conference during the annual World Economic Forum in the Swiss Alps, the Treasury Secretary dismissed Denmark as “irrelevant” amid President Donald Trump’s demands that the country sell Greenland. He mocked California Gov. Gavin Newsom, who was also in Davos and had called Bessent smug by saying he’s, “Patrick Bateman meets Sparkle Beach Ken.”

Bessent defended Trump’s desires to acquire Greenland, in an appearance on CNBC, claiming it was important to national security that it be controlled by the US. He accused Federal Reserve Chairman Jerome Powell of “trying to put his thumb on the scale” by attending a Supreme Court argument over Trump’s attempt to fire Fed Governor Lisa Cook, though Bessent himself had attended the high court’s tariff arguments last fall.

And during a panel discussion with Fox News’ Maria Bartiromo, he told European officials — and perhaps more importantly investors — not to overreact to Trump’s threats to use tariffs to coerce a sale of Greenland.

“I’d tell everyone to sit back, take a deep breath — do not retaliate,” Bessent said, repeating the last line for emphasis.

Bessent’s ubiquitous presence at Davos underscored his unique and critical dual roles in the Trump administration: Publicly, he’s a stout defender of the president and his impulsive policy demands. Privately, he’s the translator of his boss to Wall Street, charged with keeping the markets from overreacting to Trump-induced whiplash.

“He views the markets and their stability as a huge part of his job,” said a source with knowledge of Bessent’s thinking. “He doesn’t want the administration to do anything that could disrupt the markets and make his job more difficult.”

On Wall Street, Bessent is still seen as a crucial voice to help soothe investor fears — even if the latest volatility over Trump’s Greenland tariff threats may have left a lasting impression.

“We used to say Trump can’t be stopped. The best you can hope for is to contain him. And that’s Bessent’s job,” said Art Hogan, chief market strategist at B. Riley Financial and a critic of Trump’s policies. “He still says things that, to me, are cringeworthy supporting the position du jour of the administration. We are lucky to have him, but I still get uneasy about some of the things that come out of his mouth.”

At Davos, Bessent didn’t just defend the administration’s economic policies — he weaponized them, framing the proposed “Greenland acquisition” not as a real estate whim but as a strategic “national emergency” avoidance maneuver. By telling European allies to “sit back and relax” amidst tariff threats, Bessent effectively moved the Treasury from its role as a stabilizer to a tip-of-the-spear enforcer for the “Trump Model.”

Bessent has been the administration’s most important economic official in Trump’s second term. The South Carolinian hedge fund manager who previously donated to Democrats has adopted a persona that is part investment strategist and part MAGA firebrand.

He’s likely the first Treasury Secretary to treat a Davos presser more like a segment on Steve Bannon’s “War Room,” signaling that the administration’s economic success is predicated not on global consensus, but on ignoring “media hysteria” and forcing the world to “take the President at his word” — even if the president has gone back on his word repeatedly on tariff threats.

The tone and message marks a sharp departure the cautious, market sensitive communications approach deployed by Bessent’s predecessors in the role. But it’s also fitting: Bessent was a contributor to Bannon’s show before entering government service and made sure to join for a half-hour while in Davos.

The Treasury Department did not respond to a request for comment.

When Trump talks about the economy, Bessent is usually on his mind. In his public remarks over the past two weeks, the president mentioned Bessent’s name 11 times in his hour-long economic speech in Detroit on January 14, seven times in his 90-minute remarks in Davos and again appeared to marvel at Bessent’s firm insistence that he has no desire to leave his role, even for the coveted Fed chair nomination.

Heading into the annual World Economic Forum, Trump sparked instability across NATO countries — and the financial markets — by ratcheting up the pressure on Denmark to sell Greenland to the US. When European countries pushed back and deployed military personnel to Greenland, Trump threatened a 10% tariff that would kick in February 1.

The markets dropped on Trump’s tariff threat as he arrived in Davos Tuesday, with the S&P 500 dropping 2%.

Among the large US contingent that descended on Davos, Bessent was the point person publicly driving home the US message on Greenland.

Over the course of the week, Bessent conducted three TV interviews and appeared on two podcasts. He held two press conferences and a gaggle in Davos and appeared in a fireside chat on the forum’s the main stage.

Bessent generated headlines for taking on Newsom with insults — after the California governor accused the Treasury secretary of being out of touch when Bessent suggested that “mom and pop” investors “bought five, 10, 12 homes.”

And he rankled diplomats by dissing Denmark after the country’s pension fund announced it would unwind investments in US bonds amid the Greenland turmoil.

“Denmark’s investment in US Treasury bonds — like Denmark itself — is irrelevant,” Bessent told reporters when asked how concerned he is about institutional investors in Europe potentially pulling out of Treasuries. “It is less than $100 million. They’ve been selling Treasuries. They have for years.”

Behind the scenes, Bessent held a face-to-face meeting with his Chinese counterpart He Lifeng, and, according to several European diplomats and business executives in Davos, was the most sought after member of the US contingent at the annual economic forum, with European business executives scrambling to secure time with Trump’s chief economic official.

Bessent’s message behind the scenes to the Europeans was to “take a deep breath” and ignore the hysteria, reminding them how quickly the stock market recovered last April, according to two people who spoke with him.

By the end of the day Wednesday — after Trump called off the European tariffs and said there was a framework for a Greenland deal following his meeting with NATO chief Mark Rutte — the markets had mostly recovered, even if the whole episode left lingering uncertainty on Wall Street.

For Bessent, Trump’s Greenland walkback affirmed his earlier message not to overreact to tariff threats. The Treasury Secretary often points to the dire economic warnings from Trump’s “liberation day” tariffs last April.

The worst predictions largely have not materialized: There has been no massive spike in inflation and the potential for catastrophic supply chain disruptions has diminished as countries and businesses have navigated and come to terms with a reshaped global trading system. Trump’s most draconian threats were often pulled back, and in many cases served as catalysts for bilateral agreements with close allies. Perhaps most critically — and largely due to Bessent’s role — the all-out economic war between the US and China has been managed to a fragile truce after several flare ups.

Of course, Trump’s own willingness to walk back his most seismic tariff actions is a significant reason why some of the dire economic forecasts weren’t realized. The US-China détente remains unstable, and executives continue to warn that price spikes on products will filter through to consumers in the months ahead.

“The business community is confused and disappointed with Bessent’s public statements but still has high confidence in his private messaging and persuasive influence with Trump,” said Jeffrey Sonnenfeld, founder of the Yale Chief Executive Leadership Institute.

Multiple White House officials said Bessent’s growing profile was indicative of how much Trump relied on and valued him.

”Secretary Bessent has done a phenomenal job on behalf of President Trump, there’s nobody better, smarter or more qualified to serve in this role,” press secretary Karoline Leavitt said in a statement.

Bessent has had more than a few tussles with other administration officials and Trump loyalists since taking office. In April, Bessent got into a shouting match with now-former White House adviser Elon Musk over who would lead the IRS, CNN reported last year.

In September, Bessent almost came to blows with the director of the Federal Housing Finance Agency, Bill Pulte, during an intimate dinner at the Executive Club, an exclusive MAGA-aligned group started by some of Trump’s closest advisers.

One source close to the White House described Bessent as “a bit of a hot head.”

Bessent and Secretary of Commerce Howard Lutnick have also had friction, sources told CNN. Part of the tension dates back to before Trump took office, when Lutnick, who was running Trump’s transition, made a play to be Treasury secretary, while Bessent was the lead contender. This week, while speaking to CEOs in Davos, Trump seemed to acknowledge their at times strained relationship.

“I would say these are two exact opposites, and I like that,” Trump said. “I like that they are the exact opposite.”

Trump has made clear his feelings about Bessent’s place in the administration — even as the Treasury Secretary prepares to tackle what might be his most delicate and risk-laden balancing act yet: Leading the selection process for a new Fed chair.

Bessent has led a meticulous search that’s now down to four finalists — while keeping himself out of the running — as Trump has continued to attack Powell.

The Treasury secretary has maintained a position as a neutral facilitator rather than a kingmaker. He’s deliberately avoided ranking his finalists or providing an explicit preference, instead presenting the president with a “slate” of distinct archetypes ranging from institutionalists to market practitioners.

Central to this approach was a lesson learned from the first Trump administration. Bessent observed how his predecessor, Steven Mnuchin, was often blamed by the president for the subsequent policy decisions that Powell made.

“Because he had proposed Powell for the Fed job, Mnuchin had to absorb abuse from the president at the start of virtually every meeting for his recommendation from that point on,” one official said.

Trump has signaled he has expectations for his selection — repeatedly demanding Powell lower interest rates to help juice the economy. Bessent will be challenged to manage reaction from Wall Street but also from the president — who is likely to blame Bessent for future Fed actions he dislikes.

The Fed chair search was complicated even further earlier this month after the Justice Department issued subpoenas to Powell and opened an investigation over the renovation of the Fed’s headquarters.

Bessent told people that he was unhappy with the DOJ probe, a source with knowledge of the matter told CNN, and he reportedly expressed concern to the president that the investigation had “made a mess” of the transition by causing Powell to “dig in.”

Appearing this week on “War Room,” the podcast hosted by Bannon, a Trump ally who briefly served in his first White House, Bessent reflected on what amounted to a lengthy year inside the Trump administration.

“Trump years are like dog years, I feel like I’ve aged seven years, but it’s been worth it,” Bessent said. “It’s been worth it.”