Treasury Secretary Scott Bessent delivered a forceful call for reform Wednesday, urging the International Monetary Fund (IMF) and World Bank to return to their founding missions and abandon political distractions that are undermining global financial stability.
Speaking at the Institute of International Finance’s Global Outlook Forum, Bessent accused both institutions of drifting from their original post-WWII mandates of economic cooperation and reconstruction. He warned that their current agendas—dominated by climate change, gender policies, and social issues—are contributing to worldwide economic imbalances.
“The IMF must be a brutal truth-teller,” Bessent said, stressing the need for equal accountability, especially toward nations like China. He criticized China’s longstanding currency manipulation and global market distortions, urging the IMF to stop turning a blind eye. Bessent also called for an end to irresponsible lending practices, arguing that the IMF should support countries willing to reform and abandon unsustainable economic models.
The World Bank, Bessent argued, has similarly gone off course by prioritizing green energy projects over affordable energy solutions. This approach, he said, prolongs economic stagnation in developing nations and prevents them from achieving energy abundance. He also demanded enforcement of the bank’s “graduation policy,” citing China as an example of a country that no longer meets the criteria for World Bank aid but continues to benefit from it.
Bessent framed these concerns within the broader context of America’s efforts to “rebalance global commerce.” He said that more than 100 countries have approached the U.S. for new trade agreements since President Donald Trump’s “Liberation Day” tariff announcements. Still, he emphasized that the U.S. should not shoulder the burden of fixing global trade alone.
“Intentional policy choices by other countries have hollowed out America’s manufacturing sector and undermined our critical supply chains,” Bessent warned, adding that restoring fairness and transparency in international finance is essential for U.S. national and economic security.
