Treasury Secretary Scott Bescent on Wednesday called for a major overhaul of the International Monetary Fund and the World Bank's mission, but said the US continues to commit to maintaining its leadership role in the World Economic Organization.
Comments come at a moment of concern among policymakers in a speech on the bystanders of the IMF and World Bank's spring meeting that the Trump administration could completely withdraw the United States from the fund and bank.
The United States has disrupted the global trading system in recent months, and the Trump administration's views on climate change, international development and economic equity are often at odds with those of other countries, shareholders of global institutions.
On Tuesday, the IMF downgraded its global and US growth outlook as a result of President Trump's penalties. Trade tensions between the US and China, the world's largest economy, have threatened to squeeze production this year and in the future.
In his remarks, Bescent defended the Trump administration's trade actions and called on China to curb economic practices that it said were destabilizing international commerce. He said the US is engaged in trade consultations with dozens of countries and expressed optimism that these negotiations will help balance the global economy and make the global trading system even more equitable.
When or when the US and China will begin to engage in consultations, or if so, it remains unknown. Trump hopes to speak to Chinese leader Xi Jinping, but said there is no formal conversation planned.
Speaking to reporters after the report, Bescent dismissed speculation that Trump was considering unilaterally lowering tariffs he imposed on China prior to negotiations with Xi Chiang. Becent emphasized that movements to rule out trade tensions need to be mutual.
“I don't think either side believes the current tariff levels are sustainable,” he said.
The Treasury Secretary added: “This amounts to an embargo, and the break between the two countries on trade is not suitable for anyone's interest,” he added.
“If the US really wants to resolve issues through dialogue and negotiations, it should stop threats and coercion and stop engaging in dialogue with China on the basis of equality, respect and mutual interest,” said Guo Jiakun, a spokesman for China in China.
Bescent made it clear that despite US concerns, the Trump administration has no intention of leaving the IMF and the World Bank.
“The “American first” doesn't mean America alone,” Bescent said. “On the contrary, it is a call for deeper cooperation and mutual respect between trading partners.”
“Far from retreating, “America First” is looking to expand US leadership in international organizations such as the IMF and the World Bank,” he added.
However, the Treasury Secretary refrained from his criticism of the institution created in 1944 to stabilize the post-World War II world economy.
“The IMF is suffering from mission creep,” Bescent said in a statement to the International Financial Research Institute. “The IMF once unwavering its mission to promote global financial cooperation and financial stability. Now it dedicates disproportionate time and resources to tackle climate change, gender and social issues.”
Arguing that the focus veils the economic mission, Becent added: “These issues are not the IMF's mission.”
The Treasury Secretary also received harsh criticism of the World Bank. This focused on fighting climate change under the Biden administration.
“Banks should no longer expect a check of vapid, buzzword-centric marketing blanks with a half-minded commitment to reform,” Bessent said. “When banks return to their core missions, they need to use their resources as efficiently and effectively as possible, and they must do so in a way that shows specific value to all member states.”
Under the leadership of Ajay Banga, Becent praised the bank's plans and considered ending restrictions on loans for nuclear projects. He said banks should be “technology-neutral” and prioritize affordability for energy investments.
“In most cases, this means investing in gas and other fossil fuel-based energy production,” Becent said. “In other cases, this could mean investing in renewable energy combined with the system to manage wind and solar intermittent.”
Banga has sought to emphasize the bank's focus on job creation as a key to economic development, and prioritizing private sector involvement in projects around the world.
Last week, Banga said he continued to discuss the direction of the bank with the Trump administration.
“We have a constructive dialogue with the US administration,” Banga said. “I don't know where it will end, but there's no problem with the dialogue I have.”
“They are asking the right questions, so we're trying to give them the right answer,” he added.
