Treasury Secretary Scott Bessent blasts the IMF’s woke ‘mission creep’
Treasury Secretary Scott Bessent recently criticized the International Monetary Fund (IMF) for prioritizing woke causes over economic stability. During a speech at the Institute of International Finance forum in Washington, DC, Bessent accused the IMF of “mission creep” and claimed that the agency spends too much time and resources on climate change, gender, and social issues, neglecting critical macroeconomic issues.
Bessent, founder of the Key Square Group investment firm, also took aim at the World Bank, the IMF’s partner institution, urging them to rein in excessive spending and refocus on their core missions. He emphasized the importance of holding both institutions accountable and working together to achieve their goals.
The Trump administration, according to Bessent, is eager to collaborate with the IMF and World Bank as long as they stay true to their missions. He warned against deviating from their core objectives and urged them to prioritize economic stability above all else.
In addition to criticizing the IMF and World Bank, Bessent also called out the Chinese Communist Party for attempting to export its way out of economic troubles. He emphasized the need for a balanced approach to economic policies and warned against relying solely on exports to stimulate growth.
Bessent’s remarks come at a time when the IMF has slashed its growth forecast for the US economy, citing uncertainty over tariffs as a major factor. The IMF’s chief economist, Pierre-Olivier Gourinchas, stated that tariffs imposed by the Trump administration are a negative supply shock for the economy, impacting growth projections for 2025.
The IMF, established in 1944 during the Bretton Woods Conference, plays a crucial role as a lender of last resort for debt-laden economies. However, critics argue that the IMF’s austerity measures can be too harsh, leading to social spending cuts and public sector reductions in exchange for financial assistance.
Despite its role in assisting struggling economies, the IMF has faced criticism for the lavish perks enjoyed by its officials. Reports have revealed that IMF staff members receive generous benefits, including access to exclusive golf clubs and lucrative retirement packages.
In conclusion, Bessent’s critique of the IMF and World Bank highlights the importance of maintaining focus on core economic issues and avoiding distractions from social and environmental causes. By prioritizing economic stability and accountability, these institutions can better serve their purpose and support global financial stability.
