Treasury Secretary Scott Bessent argued in a speech that the multilateral economic institutions have veered away from their missions.The New York Times reports that Treasury Secretary Scott Bessent called for significant changes to the missions of the International Monetary Fund (IMF) and the World Bank on Wednesday. However, he also reassured that the United States remains committed to its leadership role in these global economic institutions. Bessent made these comments during a speech at the spring meetings of the IMF and World Bank, amidst concerns that the Trump administration may withdraw the US from these organizations entirely.
The Trump administration’s actions, such as imposing tariffs and differing views on issues like climate change and economic equity, have caused tension among policymakers and other nations who are shareholders in these institutions. The IMF recently downgraded its global growth outlook, citing the impact of President Trump’s trade policies. The ongoing trade tensions between the US and China, the world’s two largest economies, are also expected to affect global output.
In his speech, Bessent defended the Trump administration’s trade actions and urged China to address its economic practices that are causing instability in international trade. He also mentioned that the US is currently engaged in trade talks with multiple countries and expressed optimism that these negotiations will help rebalance the global economy and promote fairer trade.
However, it is still uncertain when or if the US and China will begin formal talks. President Trump has stated that he expects to speak with Chinese leader Xi Jinping, but no official discussions have been scheduled yet.
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