WASHINGTON, D.C. – In a pivotal speech delivered during the spring meetings of the International Monetary Fund (IMF) and the World Bank, U.S. Treasury Secretary Scott Bessent called for sweeping reforms to the missions of both global institutions. Despite advocating for significant changes, Bessent emphasized that the United States remains firmly committed to maintaining its leadership role in the global economic order.
The remarks, delivered Wednesday on the sidelines of the IMF and World Bank sessions, came amid rising concerns over the Trump administration’s international economic policies, including speculation about a potential U.S. withdrawal from the IMF and World Bank.
Bessent Calls Out “Mission Creep” in Global Institutions
Bessent sharply criticized the IMF, claiming it has strayed from its core mission of promoting global monetary cooperation and financial stability. He argued that the Fund now devotes excessive resources to climate change, gender equity, and social justice, issues he said dilute its economic focus.
“The IMF has suffered from mission creep,” said Bessent. “These issues are not the IMF’s mission.”
He also rebuked the World Bank’s climate agenda, a hallmark of the Biden administration’s priorities, stating that the bank must refocus on economic development and efficient resource use.
“The bank should no longer expect blank checks for vapid, buzzword-centric marketing,” Bessent added. “It must deliver tangible value for all member countries.”
Trade Tensions and Tariffs: Bessent Defends Trump Policy
Bessent defended the Trump administration’s trade policy, including the use of tariffs against China, which the IMF recently cited as a major factor in its downgraded global growth outlook. Despite escalating U.S.-China trade tensions, he remained optimistic about ongoing negotiations and emphasized fairness and balance in the global trading system.
“This is the equivalent of an embargo,” Bessent said. “A trade break between the U.S. and China does not serve anyone’s interest.”
He also dismissed rumors that President Trump would unilaterally reduce tariffs on Chinese goods ahead of any formal talks with Chinese President Xi Jinping.
“Any move to ease trade tensions must be mutual,” Bessent noted.
U.S. Commitment to Global Institutions Stands Firm
Despite his critiques, Bessent reiterated the Trump administration’s dedication to institutions like the IMF and the World Bank.
“‘America First’ does not mean America alone,” he said. “It calls for deeper collaboration and mutual respect among trade partners.”
He clarified that the U.S. is not withdrawing but instead seeking stronger U.S. leadership within international financial institutions.
Energy Investment and Future Priorities
Bessent praised the World Bank’s consideration of lifting restrictions on financing nuclear energy projects, urging a technology-neutral approach to energy development.
“Affordable energy is key,” he said. “Sometimes that means fossil fuels, sometimes renewables—what matters is reliability and cost.”
World Bank President Ajay Banga has aligned with this view, highlighting job creation and private sector engagement as top priorities for driving global development.
“We’re in a constructive dialogue with the U.S. administration,” Banga said. “They’re asking the right questions, and we’re giving them the right answers.”