U.S. Treasury Secretary Scott Bessent urged the IMF and World Bank on Wednesday to return to their ‘core missions,’ criticizing both for expanding into climate and gender issues.
Speaking at the annual meetings in Washington, Bessent outlined the Trump administration’s vision for reforming the international financial institutions while promoting an “America First” economic agenda globally.
The Treasury chief praised recent moves by both organizations to scale back non-economic initiatives. He noted the IMF is “folding its climate and gender units into one that is focused on macro-financial and structural policies.”
Bessent also welcomed the World Bank’s decision to lift its ban on financing nuclear power generation. But he pushed for more dramatic changes, demanding the Bank remove its 45% climate financing target.
“Energy abundance sparks economic abundance, and the Bank must take an all-of-the-above approach to energy that includes financing for gas, oil, and coal,” Bessent said.
The statement aligns with the Trump administration’s broader economic strategy of ‘tax cuts, energy abundance, and regulatory modernization. Bessent touted July’s tax legislation as unleashing “the full potential of the U.S. economy.”
On China, Bessent urged the IMF to examine how industrial policies in large economies “contribute to imbalances” and create “harmful spillovers.” He also called for ending World Bank support to China entirely.
The Treasury Secretary criticized both institutions for budget growth and “ballooning salaries.” He demanded flat administrative budgets and salary freezes for senior officials.
“At a time when countries around the world are tightening their belts, we should expect the same from public institutions,” Bessent said.
Bessent stressed that “America First does not mean America alone,” pledging U.S. engagement to reform both institutions. But his statement signals a sharp departure from previous administrations’ approaches to multilateral development.
The Treasury chief also took aim at repeat borrowers from the IMF, suggesting current programs enable dependency rather than reform. He called for stronger conditionality and burden-sharing from creditors.
On governance, Bessent reaffirmed U.S. support for Congressional approval of IMF quota reforms while stating there’s “no consensus” for shareholding changes at the World Bank.