Speaking on Wednesday, Treasury Secretary Scott Bessent criticized the World Bank and the International Monetary Fund’s activities while trying to reassure investors that the US will continue to be a global leader.
In an address to the Institute of International Finance, he stated, “America first does not imply America alone…. “On the contrary, it’s an appeal for greater economic cooperation based on mutual regard and understanding.”
Even while Bessent stated that the International Monetary Fund and the World Bank are “falling short,” he refrained from urging the United States to withdraw from the organizations, as some conservatives have argued.
Bessent, a former hedge fund manager who closely monitors the financial markets, has been trying to assuage the economic anxiety caused by President Trump’s harsh tariffs, and this is just the latest example of his efforts.
Afterwards, reporters wanted to know Bessent’s thoughts on a Wall Street Journal story that cited anonymous sources as saying the Republican president’s massive tariffs on China may be halved.
That conversation is happening? “I’d be surprised,” Bessent replied. A de-escalation, he argued, is inevitable in the trade war between Beijing and Washington.
While speaking to China on Tuesday, Trump said that the 145% tariffs may “come down substantially.” “Everyone wants to be a part of what we’re doing” and “everyone’s going to be happy” were his words to the press on Wednesday.
In his address in Washington, Bessent took aim at the International Monetary Fund and the World Bank, two organizations that help finance various projects throughout the globe.
He assured them that the country will “push them to accomplish their important mandates” by utilizing the leadership and influence of the United States at these organizations.
A number of Bessent’s points were similar to those made by the Trump administration in its attempts to dismantle leftist ideology within government agencies. Concerning climate change, gender, and social concerns, Bessent stated that the IMF “devotes disproportionate time and resources to work on these issues” and that the organization “has suffered from mission creep.”
The World Bank, he added, “should no longer expect blank checks for vapid, buzzword-centric marketing accompanied by half-hearted commitments to reform” and was experiencing similar issues.
Bessent noted that one issue is that international organizations continue to see China through the lens of a developing nation, which benefits the country. He remarked that, with China’s economy now ranking second, “it’s an adult economy.”
In spite of the escalating tensions between the two countries, Bessent stated, “there is an opportunity for a big deal here.”
In order to diversify its economy away from its reliance on cheap exports, Bessent proposes that the United States should grow manufacturing while China raises consumption.
“If they are serious about rebalancing, then we should work together,” he stated. “What a fantastic chance.”
“Exerting pressure is not the right way to deal with China and simply will not work,” Beijing stated on Wednesday.
