WASHINGTON D.C., April 25 — U.S. Treasury Secretary Scott Bessent delivered a forceful and comprehensive keynote address at the Institute of International Finance (IIF) Global Outlook Forum, calling for a fundamental rebalancing of the global financial system and a back-to-basics refocusing of the Bretton Woods institutions.
Bessent, a seasoned figure in the world of currency and fixed income, emphasized the need for strong, clear-eyed leadership at the International Monetary Fund (IMF) and World Bank to restore global economic equilibrium.
Highlights
- Treasury Secretary Scott Bessent calls for “reconstructing” the IMF and World Bank to their founding missions.
- America First “does not mean America alone,” but deeper collaboration.
- U.S. trade rebalancing efforts highlighted as necessary to address persistent global imbalances.
- Bessent criticizes IMF “mission creep” into climate, gender, and social issues.
- Calls for IMF to hold surplus countries like China accountable for distortive practices.
- World Bank urged to prioritize energy access and efficient resource use, including nuclear energy support.
- Strong advocacy for refocusing on sustainable macroeconomic stability.
Restoring the Bretton Woods Vision
Bessent reminded the audience of the Bretton Woods Conference’s original intent: to align national interests with international order after a period of global upheaval. Today, he warned, the international financial system faces a similar imbalance — but it doesn’t have to be permanent.
“The IMF and World Bank must reconnect with their founding missions,” Bessent said. “Their purpose is to restore and preserve balance.”
He argued that mission creep has diluted the effectiveness of these institutions. Rather than focusing on macroeconomic stability and growth, the IMF has veered into non-core issues such as climate and social policy.
America First: Collaboration, Not Isolation
Dispelling fears that “America First” implied withdrawal from the global stage, Bessent asserted:
“America First does not mean America alone. It’s a call for deeper collaboration and mutual respect among trade partners.”
He framed U.S. leadership as essential to restoring fairness and sustainability in the global economy, emphasizing that the U.S. would continue to leverage its influence to reform multilateral institutions for the betterment of all.
Confronting Trade Imbalances
Bessent painted a stark picture of long-standing trade imbalances, particularly with China, highlighting how manufacturing overcapacity and weak domestic demand have created persistent global vulnerabilities.
He called out China’s current economic model — heavily reliant on export-driven growth — as unsustainable and urged a shift towards supporting domestic consumption.
“China knows it needs to change. Everyone knows it needs to change,” he said, extending an invitation for collaborative reform.
Bessent also stressed the critical importance of rebalancing Europe’s contribution to global demand, praising recent moves toward greater fiscal and defense spending within the European Union.
Revamping the IMF and World Bank
IMF:
- Focus on core mission: monetary cooperation, balanced growth, and financial stability.
- Avoid “mission creep” into climate and social issues.
- Call out surplus countries and distortive practices.
- Ensure lending is temporary and reform-focused.
World Bank:
- Prioritize energy access, particularly base-load energy solutions like gas and nuclear.
- Recommit to fighting poverty and promoting sustainable economic growth.
- Graduate middle-income countries, such as China, from concessional lending.
- Apply transparent, value-driven procurement policies.
Bessent emphasized that the U.S. would push for accountability and measurable reforms at both institutions.
Reaffirming U.S. Economic Leadership
Despite global turbulence, Bessent reaffirmed America’s commitment to international economic leadership. He underscored the importance of revitalizing Main Street by empowering small and community banks, not just Wall Street.
In a nod to long-term strategy, Bessent said, “Economic security is national security. National security is economic security.”
He concluded with a call to allies and partners to work together to rebuild a global economic system founded on fairness, transparency, and genuine prosperity.
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