Bessent pushes overhaul of IMF and World Bank, defends US role amid global tensions

Bessent pushes overhaul of IMF and World Bank

Treasury Secretary Scott Bessent on Wednesday called for sweeping reforms to the International Monetary Fund and the World Bank, criticizing both institutions for straying from their original missions and emphasising that the United States would remain engaged — but on its own terms, the New York Times reported.

Speaking on the sidelines of the IMF and World Bank’s spring meetings, Bessent reassured international partners that despite growing concern, the Trump administration has no plans to withdraw from the organizations. Instead, he argued for a recalibration of their agendas, saying they must shift away from “vapid, buzzword-centric marketing” and focus on their core financial and economic mandates.

“America First” and multilateralism — redefined

“‘America First’ does not mean America alone,” Bessent said during his address to the Institute of International Finance. “It is a call for deeper collaboration and mutual respect among trade partners.”

At the same time, Bessent did not mince words. He criticised the IMF for devoting too many resources to “climate change, gender, and social issues,” suggesting that these topics have eclipsed the fund’s primary responsibility: global monetary cooperation and financial stability.

“The IMF has suffered from mission creep,” he stated.

World Bank under scrutiny, with qualified praise

Bessent’s remarks also targeted the World Bank, accusing it of pursuing reform in name only while promoting vague development goals.

“The Bank should no longer expect blank cheques,” he said. “It must demonstrate tangible value for all member countries.”

Still, he applauded World Bank President Ajay Banga for considering a shift in the Bank’s policy on nuclear energy, calling it a necessary step toward “tech neutrality.” Bessent added that energy investment should prioritise affordability, which, in the Trump administration’s view, often means gas and fossil fuels over renewables.

US-China trade war overshadows global growth

The speech came amid deteriorating global economic forecasts. The IMF this week downgraded growth projections for both the United States and the global economy, blaming Trump’s aggressive tariffs, particularly those targeting China. Trade tensions between the two largest economies have heightened fears of a prolonged slowdown.

Bessent defended the tariffs, arguing they are a justified response to China’s destabilising trade practices. Still, he acknowledged that the status quo is unsustainable: “This is the equivalent of an embargo,” he said. “A break between the two countries on trade does not suit anyone’s interest.”

Talks between the US and China have yet to materialise, despite Trump’s claim that he expects to speak with Chinese President Xi Jinping soon. Chinese officials, meanwhile, have criticised US pressure tactics, urging Washington to engage in “dialogue based on equality.”

The US signals it’s staying in — but not quietly

Bessent’s comments mark a sharp divergence from traditional US support for the World Bank and IMF’s expanded mission, particularly under past administrations that emphasised social, environmental, and governance reforms. But he insisted the US is not retreating.

“Far from stepping back,” he said, “America First seeks to expand US leadership in international institutions.”

World Bank President Ajay Banga, in response, described ongoing conversations with the US as “constructive,” saying the administration is “asking the right questions, and we’re trying to give them the right answers.”

For now, Washington appears committed to remaining within the halls of multilateral finance — albeit loudly, sceptically, and on its own terms.