The Treasury Secretary also stated that the U.S. must take a more active stance in shaping industrial policy, particularly in sectors exposed to strategic competition with China.
Treasury Secretary Scott Bessent reportedly stated on Wednesday that the U.S. government may ask defense contractors to scale back share repurchases and focus more on research and production to address delivery shortfalls.
“Our defense companies are woefully behind in terms of deliveries,” Bessent said during an interview with CNBC. “So we may have to, as their biggest customer, prod them to do a little more research and do fewer stock buybacks, which is really what got Boeing into trouble.”
He added that in some cases, “we’re the only customer,” underscoring the government’s dominant role in the U.S. defense sector.
The Treasury Secretary also stated that the U.S. must take a more active stance in shaping industrial policy, particularly in sectors exposed to strategic competition with China. “When you are facing a non-market economy like China, then you have to exercise industry policy,” Bessent said. “We’re going to set price floors and forward buying… We’re going to do it across a range of industries.”
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