U.S. Treasury Secretary Scott Bessent strongly asserted the necessity of American financial strength during an interview on CNBC’s “Squawk Box.” Speaking with host Joe Kernen, Bessent detailed how the administration’s current geopolitical and economic strategies are actively reinforcing the U.S. dollar’s role as the primary global currency.
Kernen initiated the conversation by highlighting the dollar’s recent, often unnoticed rebound, pushing back against previous narratives regarding its decline. Kernen stated that “dollar dominance is essential” to maintaining the nation’s financial leadership.
Bessent agreed with the assessment, explaining that shifts in international trade are bringing sanctioned nations back into the U.S. financial ecosystem. He cited Venezuela as a primary example, noting that the country had previously avoided the dollar system due to sanctions, opting instead to sell discounted oil to China.
According to Bessent, Venezuela is now transitioning back, with invoices being issued in dollars. He added that similar dynamics are playing out in the Middle East, stating that “in the Iranian negotiations, the Iranians will be invoicing in dollars.”
“Everything we are doing is pushing the dollar back,” Bessent said during the broadcast. “It’s never left as the centerpiece for the global currency system, but we’re reinforcing it.”
Looking ahead, Bessent predicted that geopolitical conflicts would not permanently decouple major global powers from U.S. financial structures. He specifically pointed to the ongoing war in Eastern Europe as an example of where this pattern will likely repeat.
“I would anticipate when the Russia-Ukraine conflict ends, that Russia will want to come back in the dollar system because again, the dollar, it’s our liquidity, it’s our capital markets. It’s the depth and breadth. Everyone wants to be here,” Bessent remarked.
The Treasury Secretary concluded by arguing that the United States should confidently wield its financial influence on the world stage. He noted that while the country frequently “course-corrects” when it goes too far in one direction, Washington must remain assertive regarding its economic leverage.
“We should not be shy about flexing where we have advantages and where we have advantages, share with our allies and push back on those who are not aligned with us,” Bessent said.
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