U.S. Treasury Secretary Dismisses European Bond Sell-Off Concerns Amid Greenland Dispute
U.S. Treasury Secretary Scott Bessent expressed unwavering confidence in the stability of U.S. Treasury markets, despite escalating tensions over the Trump administration's ambitions to acquire Greenland and potential retaliatory tariffs against European allies. Speaking at the World Economic Forum in Davos, Switzerland, Bessent directly addressed fears that European institutional investors might initiate a sell-off of U.S. government bonds in protest.
Danish Investment Deemed Insignificant Amid Diplomatic Spat
Bessent specifically targeted Denmark, whose investment in U.S. Treasuries he described as minimal and inconsequential to broader market dynamics. "Denmark's investment in the U.S. Treasury bonds, like Denmark itself, is irrelevant," he stated bluntly to reporters, emphasizing the limited scale of Danish holdings. He further highlighted robust foreign investment in recent Treasury auctions, suggesting strong global demand persists regardless of political friction.
Sharp Rebuttal to European Criticism and Macron's Remarks
The Treasury Secretary's comments came as a direct response to criticism from European leaders, particularly French President Emmanuel Macron. Macron had previously warned that Europe would not yield to intimidation over Greenland and suggested the European Union might deploy its Anti-Coercion Instrument—a powerful trade defense mechanism colloquially termed the "trade bazooka." Bessent dismissed Macron's statements as "inflammatory" and questioned the French leader's priorities, given domestic budgetary challenges.
"If this is all President Macron has to do ... when the French budget is in shambles, I would suggest that he focuses on other things for the French people," Bessent remarked, underscoring his belief that the Greenland issue should not dominate transatlantic discourse.
Broader Geopolitical Context and Calls for Patience
Beyond the immediate Greenland controversy, Bessent also addressed other geopolitical sore points, including Britain's plans regarding the Chagos Archipelago, which he framed as a disappointment to U.S. interests. He urged critics of the Trump administration's approach to Greenland to exercise restraint and await President Trump's personal engagement on the matter.
"Why don't they sit down, wait for President Trump to get here and listen to his argument?" he proposed, expressing confidence that the administration's rationale would ultimately persuade skeptics. Bessent concluded by reaffirming a "grow, baby, grow" economic policy as central to the U.S. agenda during its G20 presidency, signaling a focus on expansion over diplomatic concessions.
