Bessent demands fixes at IMF and World Bank: "They are falling short"
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Treasury Secretary Scott Bessent on Wednesday said the Trump administration would leverage its power to "push" the International Monetary Fund and the World Bank in a new direction.
Why it matters: Bessent's comments offer the strongest hint yet of the White House's intention to try to nudge the groups to align better with the Trump agenda.
What they're saying: "The IMF and World Bank serve critical roles in the international system," Bessent said in a speech at the Institute of International Finance.
- "But under the status quo, they are falling short," Bessent added, calling on the institutions to "step back from their sprawling and unfocused agendas, which have stifled their ability to deliver on their core mandates."
The big picture: Bessent attacked the IMF for falling victim to mission creep, alleging that the group devotes "disproportionate time and resources to work on climate change, gender, and social issues."
- "Today's IMF has been whistling past the graveyard," Bessent said, alleging both institutions' agendas are misaligned with addressing global economic imbalances.
What to watch: "Going forward, the Trump administration will leverage U.S. leadership and influence at these institutions and push them to accomplish their important mandates," Bessent said.
- "The United States will also demand that the management and staff of these institutions be accountable for demonstrating real progress," Bessent added.
The intrigue: The IMF and World Bank host spring meetings in Washington, D.C. this week, annual gatherings of global leaders, finance ministers and central bankers.
- This year's meetings are focused on the world's economic fallout from the Trump administration's aggressive trade agenda and a broad retreat from the U.S. on the global stage.
Yes, but: In the speech, Bessent said the U.S. wants to engage with global economy, not shut itself out — even as the administration has pursued protectionist policies.
- "America First does not mean America alone. To the contrary, it is a call for deeper collaboration and mutual respect among trade partners," Bessent said.
- He said the U.S. was "doubling down" on its engagement with the world's economic system, including at the IMF and the World Bank.
Editor's note: This story has been updated with details of Bessent's speech.
