Treasury Secretary Scott Bessent on Wednesday called for major overhauls to the missions of the International Monetary Fund and the World Bank but said that the United States remained committed to maintaining its leadership role at the global economic institutions.
The comments, made at a speech on the sidelines of the spring meetings of the I.M.F. and the World Bank, come at a moment of concern among policymakers that the Trump administration could withdraw the United States entirely from the fund and the bank.
The United States has upended the global trading system in recent months and the views of the Trump administration on climate change, international development and economic equity are often at odds with those of the other nations that are shareholders in the global institutions.
The speech came a day after the I.M.F. downgraded its outlook for growth globally and in the United States as a result of President Trump’s punishing tariffs. Trade tension between the United States and China, the world’s largest economies, threaten to weigh on output this year and next.
In his remarks, Mr. Bessent defended the Trump administration’s trade actions and called for China to curb economic practices that he said were destabilizing international commerce. He noted that the United States was actively engaged in trade talks with dozens of countries and expressed optimism that these negotiations would help rebalance the world economy and make the global trading system more fair.
It remains unclear when, or if, the United States and China will begin to engage in talks. Mr. Trump has said he expects to speak with Xi Jinping, China’s leader, but no formal conversations have been scheduled.
Speaking to reporters after his remarks, Mr. Bessent dismissed speculation that Mr. Trump was considering unilaterally lowering the tariffs that he has imposed on China before any negotiations with Mr. Xi. Mr. Bessent emphasized that any moves to de-escalate trade tensions would need to be mutual.
“I don’t think either side believes that the current tariff levels are sustainable,” he said.
The Treasury Secretary added, “This is the equivalent of an embargo and a break between the two countries on trade does not suit anyone’s interest.”
Guo Jiakun, a spokesman for China’s foreign ministry, said overnight that “if the U.S. truly wants to resolve issues through dialogue and negotiation, it should stop threatening and coercing, and engage in dialogue with China on the basis of equality, respect and mutual benefit.”
Mr. Bessent made clear that despite the concerns of the United States, the Trump administration does not plan to walk away from the I.M.F. and the World Bank.
“‘America First’ does not mean America alone,” Mr. Bessent said. “To the contrary, it is a call for deeper collaboration and mutual respect among trade partners.”
“Far from stepping back, ‘America First’ seeks to expand U.S. leadership in international institutions like the I.M.F. and World Bank,” he added.
But the Treasury secretary did not hold back in his criticism of the institutions that were created in 1944 to stabilize the world economy after World War II.
“The I.M.F. has suffered from mission creep,” Mr. Bessent said in remarks to the Institute of International Finance. “The I.M.F. was once unwavering in its mission of promoting global monetary cooperation and financial stability. Now it devotes disproportionate time and resources to work on climate change, gender, and social issues.”
Arguing that its focus has overshadowed its economic mission, Mr. Bessent added: “These issues are not the I.M.F.’s mission.”
The Treasury secretary also had tough criticism for the World Bank, which under the Biden administration increased its focus on combating climate change.
“The bank should no longer expect blank checks for vapid, buzzword-centric marketing accompanied by halfhearted commitments to reform,” Mr. Bessent said. “As the bank returns to its core mission, it must use its resources as efficiently and effectively as possible. And it must do so in ways that demonstrate tangible value for all member countries.”
Mr. Bessent did applaud the bank’s plan, under the leadership of Ajay Banga, to consider ending its restrictions on lending for nuclear energy projects. He said that the bank should be “tech neutral” and prioritize affordability in energy investment.
“In most cases, this means investing in gas and other fossil fuel-based energy production,” Mr. Bessent said. “In other cases, this may mean investing in renewable energy coupled with systems to help manage the intermittency of wind and solar.”
Mr. Banga has sought to emphasize the bank’s focus on job creation as key to economic development and to prioritize private sector involvement in projects around the world.
Last week, Mr. Banga said that he continued to have talks with the Trump administration about the direction of the bank.
“We’re having a constructive dialogue with the U.S. administration,” Mr. Banga said. “I don’t know where it’ll end, but I’ve got no problem with the dialogue I’m having.”
“They’re asking the right questions, and we’re trying to give them the right answers,” he added.
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