US Treasury Secretary Scott Bessent has launched a scathing attack on the International Monetary Fund (IMF), accusing the institution of turning a blind eye to China’s export-led economic dominance and neglecting its core responsibilities in favour of climate and social policy work.
In a high-profile speech at the Institute of International Finance in Washington, Bessent criticised the IMF’s latest External Sector Report, which claimed that global imbalances were easing. Describing the report as “Polyanna-ish”, he warned that the IMF had become more concerned with “buzzword-centric marketing” than addressing structural economic threats.
“This outlook is symptomatic of an institution more dedicated to preserving the status quo than answering the hard questions,” Bessent said. “The IMF must be a brutal truthteller and not just to some members.”
The comments mark the Trump administration’s first formal intervention in how it intends to reshape the IMF and World Bank. The White House, Bessent said, would not seek to withdraw from either institution—despite calls from some allies to do so—but instead push for sweeping reforms to refocus the IMF on its original macroeconomic mission.
The Treasury Secretary argued that the fund’s increasing emphasis on climate change, gender equality and social issues is “crowding out” work on financial stability and trade surveillance. “These are not the IMF’s mission,” he declared.
Bessent’s remarks follow weeks of rising tensions between the White House and multilateral institutions, and come amid fears among IMF and World Bank staff of potential cuts to funding, employee benefits, and key programmes—particularly those supporting environmental and diversity goals in developing nations.
The sharpest criticism was reserved for the IMF’s treatment of China. Bessent called it “absurd” that China continues to be classified as a developing economy eligible for aid, despite posting record trade surpluses and pursuing aggressive export-driven growth. “We will not abide the IMF failing to critique the countries that most need it—principally, surplus countries,” he said. “The IMF needs to call out countries like China that have pursued globally distortive policies and opaque currency practices for many decades.”
The Trump administration has accused China of distorting global markets through suppressed domestic demand, overcapacity in manufacturing, and artificial currency management—accusations that have driven recent moves to impose 145 per cent tariffs on Chinese goods in the US.
Bessent’s speech coincided with a wider debate at this week’s IMF and World Bank spring meetings about the future of global trade, and whether the post-war economic order built around multilateralism can still serve modern needs. IMF Managing Director Kristalina Georgieva has attempted to bridge the gap, calling for surplus economies to adjust and urging greater trade cooperation.
Bank of England governor Andrew Bailey, also speaking in Washington this week, appeared to endorse parts of the US analysis, saying China’s export-reliant economic model was “not sustainable forever” and calling for more balanced adjustment in the global economy.
While Bessent affirmed the US would remain within the Bretton Woods institutions, he made clear that Washington expects major changes—and intends to install its own candidates into senior leadership roles to ensure reform takes root. The administration is reportedly preparing nominations for key positions, including that of deputy managing director at the IMF.
The criticism from Bessent reflects broader White House concerns that global economic governance is drifting away from its founding principles, and reinforces Trump’s broader push to reassert American priorities on the world stage.
As the largest single shareholder in the IMF and World Bank, the US holds significant influence over their strategic direction—leverage the Trump administration now appears ready to use.
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Scott Bessent attacks ‘Polyanna-ish’ IMF and demands clampdown on China’s export dominance