U.S. Treasury Calls for IMF and World Bank to Focus on Core Missions

WASHINGTON (Reuters) – U.S. Treasury Secretary Scott Bessent on Wednesday urged the International Monetary Fund (IMF) and World Bank to refocus on their primary objectives of macroeconomic stability and development. He expressed concerns that they have veered into less effective vanity projects, such as climate change.

In his remarks outlining the U.S. engagement with these institutions during their spring meetings, Bessent emphasized their critical roles in the global financial system, stating, “And the Trump administration is eager to work with them – so long as they can stay true to their missions.”

Bessent noted that while the IMF and World Bank still hold substantial value, they are experiencing ‘mission creep,’ which has diverted them from serving their stakeholders. He encouraged U.S. allies to join the effort of reform, asserting that “America First does not mean America alone.”

He highlighted the need for the IMF to stick to its core mandate and uphold stringent lending standards.

“The IMF was once unwavering in its mission of promoting global monetary cooperation and financial stability. Now it devotes disproportionate time and resources to work on climate change, gender, and social issues. These issues are not the IMF’s mission,” he stated.

Bessent added that sometimes, the IMF needs to assert that it is not obligated to lend to countries that do not implement necessary reforms.

For the World Bank, he advocated for a tech-neutral approach emphasizing affordability in energy investments, which often means focusing on gas and other fossil fuel-based energy production. He also mentioned that renewable energy projects could be supported, along with systems managing energy latency in wind and solar.