On Feb. 20, U.S. Treasury Secretary Scott Bessent suggested that Russia may receive sanction relief by engaging in talks to end the conflict in Ukraine. He shared plans to discuss economic rebalancing with Chinese officials, emphasizing consumer spending.
Regarding potential sanctions adjustments based on Ukraine war negotiations, Bessent vaguely stated, "That'd be a very good characterization," affirming the U.S.' commitment to swiftly resolving the conflict.
President Donald Trump mentioned a possible meeting with Russian President Vladimir Putin to discuss ending the war, as Bessent abstained from specifying the timing but mentioned his absence from the upcoming G20 meeting in South Africa.
During his confirmation hearing, Bessent mentioned a willingness to impose sanctions on Russian energy, especially oil majors, if directed by Trump. He criticized Ukrainian President Volodymyr Zelenskiy for not finalizing a minerals deal, describing it as part of a strategy to enhance U.S.-Ukraine relations.
In discussions with Chinese officials, Bessent aimed to encourage economic reforms favoring domestic consumption over exports. He highlighted the importance of rebalancing the Chinese economy towards consumer-driven growth, emphasizing the need to reduce dependency on exports.
Bessent suggested a potential shift towards longer-term Treasuries in government debt issuance but acknowledged challenges, including the Federal Reserve's quantitative tightening program. He addressed concerns about revaluing U.S. gold holdings to reduce borrowing or establish a sovereign wealth fund, dismissing such speculation.