Treasury Secretary Criticizes IMF and World Bank's Economic Forecast Reactions

U.S. Treasury Secretary Scott Bessent criticized the IMF and World Bank for their revised global growth and inflation forecasts, suggesting an overreaction. He noted that subsidies in Europe and Asia could worsen inflation, while expressing confidence in the U.S. economy's ability to manage higher prices efficiently.

U.S. Treasury Secretary Scott Bessent expressed skepticism over the recent adjustments to global growth forecasts and inflation predictions by the International Monetary Fund and the World Bank, suggesting they may have overreacted.

Bessent pointed out that while some European and Asian nations are introducing consumer or industrial subsidies to address supply chain disruptions, these measures could prolong inflationary pressures in those regions.

Despite the challenges, Bessent conveyed confidence that the United States will swiftly navigate through the current high price environment, avoiding the prolonged impacts faced by other countries due to their subsidy policies.

(With inputs from agencies.)