U.S. Treasury Secretary Besent says on Fed, jobs: way to get more jobs is to have private sector create jobs -CNBC

U.S. Treasury Secretary Besent says on Fed, jobs: way to get more jobs is to have private sector create jobs -CNBC

U.S. Treasury Secretary Scott Bessent Emphasizes Private Sector Job Growth and Economic Reprivatization

U.S. Treasury Secretary Scott Bessent highlighted the administration's focus on fostering private sector job creation and reducing reliance on government employment during a recent interview on CNBC's Squawk on the Street. Speaking at a summit promoting the Trump Accounts initiative—a federally supported investment program for children—Bessent underscored that the administration's policies are driving a shift toward a more privatized economy.

Recent labor data supports this narrative. In January 2026, private sector employment surged by 172,000 jobs, while government employment declined by 42,000, marking a 10.9% reduction in federal workforce numbers since October 2024. "We are reprivatizing the economy," Bessent stated, noting that deregulatory efforts and pro-business policies are attracting significant foreign direct investment. He cited projects from companies like Toyota ($10 billion over five years) and Taiwan Semiconductor Manufacturing Company ($100 billion in U.S. chip manufacturing) as evidence of growing confidence in the American market.

Bessent also addressed concerns about economic sustainability, particularly amid a weakening U.S. dollar and fears of inflation. He argued that sound policy—such as reducing trade deficits and streamlining regulations—will bolster long-term dollar strength. According to Bessent, "The money will flow in when we have the right fundamentals," he said, dismissing immediate intervention in currency markets.

On the Federal Reserve, Bessent expressed confidence in the central bank's ability to navigate inflationary pressures, though he criticized previous policies for prioritizing demand over supply-side solutions. He pointed to rising productivity and declining rent costs as indicators that inflationary risks are manageable.

While Bessent acknowledged the economy's "brittle" undercurrents, he remains optimistic about growth prospects, citing a 5.4% Atlanta Fed GDP forecast for 2026. The administration's emphasis on private sector dynamism, coupled with large-scale foreign investments, suggests a strategic pivot toward long-term economic resilience.

CNBC, January 28, 2026: CNBC, January 28, 2026
Yahoo Finance, January 2026: Yahoo Finance, January 2026
Reuters, February 25, 2026: Reuters, February 25, 2026