Sec. Bessent Shakes Markets: China Ties and Metals Policies Ignite Global Turbulence

On a charged Friday, February 13, 2026, U.S. Treasury Secretary Scott Bessent delivered a series of fiery statements revealing the Trump administration’s bold strategies on fraud prevention, trade adjustments, currency reform, and reshaping relations with Beijing. Speaking live on CNBC, Bessent painted a picture of a resilient U.S. economy navigating both domestic and global challenges.


Crackdown on Fraud: New Platform Hunts Financial Criminals


Besent announced the launch of a groundbreaking FinCEN portal designed to receive whistleblower reports on fraud, money laundering, and sanctions violations. With rewards reaching 30% of collected fines, the Treasury chief described the tool as a “Damocles sword over fraudsters,” inspired by Minnesota’s model that uncovered billions in healthcare program losses. “We follow the money just like we did with the mob,” Besent stated, emphasizing plans to expand investigations nationwide.


Trade Shock: Metals Tariffs Under Scrutiny


Addressing potential tariff reductions on steel and aluminum—set at 50% last year—Besent suggested only “occasional clarifications,” while cautioning that final decisions rest with Trump. Under pressure from U.S. industrialists, he noted ongoing discussions with Trade Representative Jamison Greer, framing any adjustments as a strategic move to ease costs without compromising national protection. Analysts see the comments as a signal to calm markets ahead of midterm elections.


Fed Battle: Push to Expedite Warsh Confirmation


Besent urged Senate Republicans to fast-track hearings for Kevin Warsh’s nomination as Federal Reserve Chair, despite objections from Senator Tom Tillis over a Department of Justice probe. “Continuity and independence must be assured,” Besent emphasized, proposing a parliamentary-style alternative review. With Jerome Powell’s term ending in May, his remarks sparked debate over the administration’s potential influence on monetary policy.


China Relations: Competition Without Decoupling


Turning to Beijing, Besent stressed that Washington seeks risk reduction, not economic decoupling. “Relations are stable now—we aim to be fair competitors,” he said, highlighting his team’s recent visit to China and upcoming meetings with Vice Premier He Lifeng ahead of Trump’s April visit. Observers note this approach aims to balance trade while safeguarding national security without triggering economic shocks.