US Treasury chief says IMF, World Bank must be 'fit for purpose'

US Treasury Secretary Scott Bessent speaks during the Institute of International Finance Global Outlook Forum successful Washington, DC. Photo: Jim WATSON / AFP
Source: AFP

The International Monetary Fund and the World Bank "must beryllium made acceptable for intent again," US Treasury Secretary Scott Bessent said Wednesday, arguing the institutions should beryllium promoting economical maturation alternatively of societal issues.

Speaking connected the sidelines of the organizations' outpouring meetings successful Washington, Bessent said the IMF devotes "disproportionate time" to clime change, gender, and different societal topics.

"The Trump Administration is anxious to enactment with them -- truthful agelong arsenic they can enactment existent to their missions," Bessent said, adding that the IMF should ore connected planetary monetary practice and fiscal stability.

The World Bank, meanwhile, should absorption connected halfway functions similar helping processing countries turn their economies, little poorness and boost backstage investment, helium said.

While the IMF and World Bank service captious roles successful the planetary economy, "under the presumption quo, they are falling short," according to Bessent.

He added that they "must measurement backmost from their sprawling and unfocused agendas."

Bessent besides called connected the IMF to beryllium tougher with borrowers, saying the money "has nary work to lend to countries that neglect to instrumentality reforms."

"Economic stableness and maturation should beryllium the markers of the IMF's occurrence -- not however overmuch money the instauration lends out," helium said.

On the World Bank, Bessent said the radical should besides "no longer expect blank checks for vapid, buzzword-centric selling accompanied by half-hearted commitments to reform."

He noted that the slope could usage resources much efficiently by helping emerging countries boost energy access, saying they should absorption connected "dependable technologies" alternatively than seeking retired "distortionary clime concern targets."

This could mean investing successful state and different fossil fuel-based vigor production, helium said.

In a briefing with reporters aft his code Wednesday, Bessent said that helium has had meetings with IMF main Kristalina Georgieva and World Bank President Ajay Banga.

"The code contiguous was not a astonishment for them," helium said.

"I deliberation that they are bully leaders, and I anticipation that they volition gain the assurance of the medication successful the coming months done their actions," Bessent added.

Bessent said helium was not acrophobic astir the IMF slashing its US maturation outlook.

He expects greater clarity connected tariffs astir the 3rd 4th of the year, and said effects of deregulation should besides statesman kicking successful astir the aforesaid time.

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Source: AFP