US Treasury chief urges IMF to curb ‘distortionary policies’
US Treasury Secretary Scott Bessent has called for the International Monetary Fund to do more in tackling “distortionary policies” that impact competition, a comment that appears directed at China.
Treasury Secretary Scott Bessent has urged the International Monetary Fund (IMF) to take a stronger stance against distortionary policies that impact global competition and employment. Speaking to the World Bank Development Committee and the IMF International Monetary and Financial Committee, Bessent stated that policymakers worldwide are grappling with the challenges posed by such policies.
He emphasized that the IMF was established to prevent the negative spillovers caused by these unfair practices. Bessent encouraged the IMF to assert its voice on this pressing issue or risk being marginalized. While not explicitly mentioning China, the world's second-largest economy has been criticized for its policies that prioritize exports over domestic growth, resulting in overproduction and price suppression.
Bessent called for the IMF to enhance its analysis of non-market policies and exchange rates and their impact on external imbalances. Furthermore, he advocated for the World Bank to concentrate on sectors vital for development and industrialization, particularly reliable and affordable energy, and to lift restrictions on financing upstream oil and gas projects.
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