Monday, January 26, 2026-At the World Economic Forum in Davos, U.S. Treasury Secretary Scott Bessent became a central figure in efforts to steady markets shaken by President Donald Trump’s aggressive push regarding Greenland.
As global stocks and bonds wobbled on fears of tariff‑related fallout and geopolitical instability, Bessent took to multiple press engagements to urge investors and European leaders not to overreact. His repeated mantra was straightforward: “sit back, take a deep breath, do not retaliate,” a refrain aimed at quelling fears of a full‑blown trade war and discouraging drastic market moves.
Bessent’s approach blended defiance with reassurance. Publicly defending the administration’s position, even dismissing Denmark’s influence and characterizing concerns about possible European financial retaliation as exaggerated, he also framed the situation as one that did not warrant panic.
He emphasized that past spikes in market anxiety over tariff threats had abated and that investors should avoid feeding into “media hysteria.” Behind the scenes, his message to European officials and financial players was consistent: let market fundamentals and diplomatic processes play out rather than responding with knee‑jerk actions.
By the week’s end, after Trump announced a framework for moving forward that eased some tariff tensions, markets largely regained footing even if uncertainty lingered. Bessent’s persistent push for calm, and his dual role as both defender of U.S. policy and translator to Wall Street, played a key role in preventing deeper sell‑offs and easing investor nerves. His efforts reflect a broader strategy within the Treasury to steer through geopolitical volatility without triggering widespread financial disruption.
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