PULSE POINTS:
❓What Happened: Treasury Secretary Scott Bessent criticized the International Monetary Fund (IMF) for diverting resources to social issues over economic stability, warning against mission drift.
👥 Who’s Involved: Scott Bessent, IMF, World Bank, Chinese Communist Party.
📍 Where & When: Washington, D.C., Institute of International Finance forum, Wednesday.
💬 Key Quote: “The IMF has been whistling past the graveyard,” Bessent said, referring to the organization’s focus on social issues at the expense of its core economic responsibilities.
⚠️ Impact: The IMF and World Bank face pressures to realign their missions. Economic forecasts have been affected by U.S. tariff policies, with U.S. growth expectations reduced.
IN FULL:
Treasury Secretary Scott Bessent admonished the International Monetary Fund (IMF) on Wednesday for prioritizing woke politics at the expense of economic stability. Speaking at the Institute of International Finance in Washington, he highlighted the IMF’s “mission creep,” warning that the agency “devotes disproportionate time and resources to work on climate change, gender, and social issues… crowding out its work on critical macroeconomic issues.”
“The IMF has been whistling past the graveyard,” the Trump official remarked.
Additionally, Bessent directed criticisms toward the World Bank, a United Nations (UN) specialized agency, advising it to control its spending and warning that its officials “should no longer expect blank checks for vapid, buzzword-centric marketing accompanied by half-hearted commitments to reform” for U.S. support.
The backdrop to Bessent’s comments is the IMF’s recent downgrade in U.S. economic growth projections, influenced by hostility to President Donald J. Trump’s tariff policy. The IMF reduced its forecast for U.S. growth in 2025 to 1.8 percent, down from an earlier estimate of 2.7 percent. Pierre-Olivier Gourinchas, the IMF’s chief economist, explicitly attributed the forecast change to the tariffs.