Scott Bessent attacks “Polyanna-ish” IMF and demands restrictions on China's export advantages
U.S. Treasury Secretary Scott Bessent launched a harsh attack on the International Monetary Fund (IMF), accusing institutions of turning a blind eye to the economic advantages of China's export leadership and neglecting its core responsibilities to support climate and social policy efforts.
In a high-profile speech by the Institute for International Finance in Washington, Bessent criticized the IMF's latest external division report, which claimed global imbalances were easing. He called the report “Polyanna-ish,” warning that the IMF is more concerned with “bug-word-centric marketing” than addressing structural economic threats.
“This prospect is a symptom of a symptom, not answering a tough question,” Bessent said. “The IMF has to be a cruel truth tackle, not just some members.”
Comments mark the first formal intervention by the Trump administration in its intent to reshape the IMF and the World Bank. Becente said the White House would not seek to withdraw from either agency, and although some allies called for it, it pushed for radical reforms to refocus the IMF on its initial macroeconomic mission.
The Finance Minister believes that the fund's increasing emphasis on climate change, gender equality and social issues is “crushing out” financial stability and trade surveillance efforts. “These are not the IMF's mission,” he declared.
Bessent's remarks come weeks after tensions between the White House and multilateral institutions and are subject to potential cuts in potential funding, employee welfare and critical procedures, especially those supporting environmental and diversity goals in developing countries.
The IMF retains the toughest criticism of China's treatment. Bessent called it “absurd” that China continues to be classified as a developing country eligible for aid, despite publishing a record trade surplus and pursuing positive export-driven growth. “We will not comply with the IMF's failure to criticize the countries that need it the most – surplus, of course,” he said. “The IMF needs to convene countries like China that have followed decades of global distorted policies and opaque monetary practices.”
The Trump administration accused China of distorting global markets through suppressed domestic demand, overcapacity and artificial currency management, which has led to a recent move that prompted the U.S. to impose 145% tariffs on Chinese goods.
Bessent's speech coincided with this week's IMF and World Bank spring meeting on the future of global trade, and the post-war economic order built around multilateralism, which still meets modern needs. IMF Managing Director Kristalina Georgieva tried to bridge the gap, calling for economic adjustments and urging greater trade cooperation.
Bank of England Governor Andrew Bailey also spoke in Washington this week, appearing to agree with part of the U.S. analysis, saying China's export-dependent economic model is “eternal sustainability” and calling for a more balanced adjustment in the global economy.
Although Bessent confirmed that the U.S. would remain at the Breton Woods agency, he made it clear that Washington expects major changes and intends to install its candidates into senior leadership positions to ensure reforms take root. The government is reportedly preparing for nominations for key positions, including the IMF's deputy managing director.
Bessent's criticism reflects wider White House concerns that global economic governance is moving away from its creation principles and strengthens Trump's broad push to redefine U.S. priorities on the world stage.
As the largest single shareholder in the IMF and the World Bank, the United States has had a significant impact on its strategic direction – and the Trump administration seems to be available now.
