Treasury Secretary Urges IMF and World Bank to Refocus

U.S. Treasury Secretary Scott Bessent has called on the International Monetary Fund and World Bank to concentrate on their fundamental missions of macroeconomic stability and development. Criticizing their focus on climate change and social issues, Bessent urged reforms to ensure the institutions serve their stakeholders effectively.

In a bold statement on Wednesday, U.S. Treasury Secretary Scott Bessent urged the International Monetary Fund (IMF) and World Bank to return to their foundational missions. Addressing the Institute of International Finance, Bessent criticized the organizations for devoting resources to areas like climate change, which he claims dilute their core objectives of macroeconomic stability and development.

Speaking on the sidelines of the institutions' spring meetings, Bessent emphasized the Trump administration's willingness to collaborate with the IMF and World Bank, provided they adhere to their primary responsibilities. He stressed that although these institutions play a crucial role in the global financial system, 'mission creep' has sidetracked them from their essential functions.

Bessent also challenged the International Monetary Fund to maintain its original mandate of promoting financial stability and monetary cooperation, noting that issues like climate change and social matters are beyond its remit. He suggested that the World Bank adopt a tech-neutral stance, focusing on affordably investing in energy sectors, including fossil fuels and renewable energy.

(With inputs from agencies.)