During the International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, D.C., on April 23, 2025, U.S. Treasury Secretary Scott Bessent criticized both institutions for deviating from their foundational economic mandates. He urged a return to their core missions, emphasizing the need for reforms to address what he described as "mission creep."

Bessent's remarks signal a potential shift in U.S. policy toward multilateral financial institutions, advocating for a focus on traditional economic roles and expressing concerns over the influence of countries like China within these organizations.

Established in 1944 during the Bretton Woods Conference, the IMF and World Bank were created to foster international economic cooperation and development. The IMF's primary mission is to ensure the stability of the international monetary system by providing financial assistance and policy advice to member countries facing balance of payments problems. The World Bank focuses on reducing poverty and supporting economic development through financial and technical assistance for projects in developing countries.

In his remarks, Secretary Bessent highlighted several concerns:

• Mission Creep: Bessent argued that the IMF and World Bank have overextended their mandates by addressing issues like climate change, gender equality, and social policies, which he believes detract from their core economic functions.

• Focus on Core Mandates: He urged the IMF to concentrate on macroeconomic and financial stability, including exchange rate, fiscal, monetary, and financial sector issues. For the World Bank, he emphasized the importance of poverty reduction and economic growth, suggesting a return to supporting energy projects that prioritize affordability, including fossil fuels and nuclear energy.

• Critique of China's Influence: Bessent expressed concern that the IMF has become too closely aligned with China and has downplayed China's impact on global economic imbalances.

IMF Managing Director Kristalina Georgieva responded by reaffirming the IMF's commitment to maintaining global macroeconomic stability while also supporting countries affected by climate change. She emphasized that the IMF addresses the macroeconomic implications of climate-related challenges, especially for vulnerable nations, and that member countries ultimately shape IMF policies.

The debate over the scope of the IMF and World Bank's activities is not new. Over the years, both institutions have evolved to address emerging global challenges, including environmental sustainability and social inclusion. Critics like Bessent argue that this expansion dilutes their effectiveness in their primary economic roles. Supporters contend that addressing issues like climate change and gender inequality is essential for sustainable economic development.

Bessent's remarks reflect the Trump administration's broader approach to international institutions, emphasizing a return to foundational mandates and skepticism toward multilateral engagements that extend beyond traditional economic concerns. This stance may influence future U.S. policy and funding decisions related to the IMF and World Bank.

Bessent's call for reform underscores the need for a balance between addressing emerging global issues and maintaining focus on core economic mandates within international financial institutions.