The US unveiled a debt resolution plan at the G20: Bessant and Warsh jointly called for "growth as the only way out of the predicament."
On August 31, the G20 Finance Ministers and Central Bank Governors Meeting opened in Asheville, North Carolina, USA. U.S. Treasury Secretary Bessenter and Federal Reserve Chairman Warsh appeared together to describe the narrative of "debt reduction through growth".
Before the conference opened, Bessant told reporters bluntly, " The only way out of the global debt crisis is growth. " He said he was "confident that many leaders agree with this."
In his opening remarks, Walsh declared that the narrative of "secular stagnation" that had dominated academia was history. He said, "The new era is an era of long-term growth. If I had to describe this moment, it would be the global investment boom."
Bessenter's growth agenda: deregulation, rebalancing, and debt restructuring
According to Axios, Bessant placed growth at the heart of the US G20 agenda at the meeting, with specific proposals including three directions:
Reduce regulation . Using the US economy as a model, Bessant called on G20 countries to more broadly implement deregulation policies and expand the role of the private sector in policymaking.
Addressing global trade imbalances . This issue is closely related to the tariff policies that the Trump administration has continued to pursue.
Improve debt restructuring mechanisms for struggling countries . Bessant lists this as an important component of the global debt path.
According to reports, in a closed-door speech to top U.S. corporate executives, Bessant further called for deregulation of the financial sector and demanded that the private sector play a greater role in policy shaping.
Walsh: Growth is an option
Warsh's attendance at the G20 as Federal Reserve Chairman marks his first appearance at the event as a Fed official since the financial crisis.
In his speech, he explicitly rejected the two major economic narratives that had dominated the previous G20 discussions: "long-term stagnation" and "global savings glut," and made a rather weighty statement:
"I've said before that inflation is a choice. Today I want to add that growth is also a choice."
Bessant retaliates against his "mentor" Druckenmiller: He "frequently changes his mind."
During the meeting, Bessant also directly addressed criticism from billionaire investor Stanley Druckenmiller regarding the U.S. Treasury market.
Druckenmiller previously published a commentary in The Wall Street Journal, calling the Treasury Department’s decision to more than double the size of its government debt buyback program a “mistake.”
In an interview with CNBC, Bessant countered, "Stan is an excellent investor, but I would point out that the U.S. bond market has been the best-performing market since the president took office."
He added, "Stan is an excellent investor; he changes his mind frequently, and he doesn't like losing money." Then, he abruptly changed his tone, "I think he lost money the day he published that commentary."
Bessant said he spoke with Druckenmiller after the article was published and that the conversation went "very well".
The Real Pressures Behind the Growth Narrative
Bessant and Walsh's growth narrative is presented in a stressful context.
The war with Iran has driven up energy prices, the continued expansion of US debt, and persistent inflationary pressures have all contributed to increased uncertainty in the global economy.
Regarding tariff policy, the Trump administration's move to impose tariffs on global trading partners was overturned by the Supreme Court earlier this year, with several of the highest tariff rates ruled unconstitutional and related companies receiving refunds. However, the White House continues to push forward with its tariff policy, recently imposing a 50% import tax on numerous Canadian goods.
Meanwhile, billionaire investor Ray Dalio warned earlier this month that the United States could face a debt crisis in the coming years.
The tense atmosphere at the meeting was equally palpable. According to Axios, just as Bessant was speaking to reporters, Canadian Finance Minister François-Philippe Champagne was nearby, having just told international journalists that the Canadian economy was performing well despite the escalating trade tensions with the United States.
French Finance Minister Roland Lescure succinctly summarized the current global economic climate: "The world economy is a bit like the weather in Asheville—unpredictable, foggy, and we hope the sun will shine before the end of the day."
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