Today, the House Committee on Financial Services, led by Chairman French Hill (AR-02), hosted Treasury Secretary Scott Bessent for a hearing entitled, “The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System.”
"The International Monetary Fund, the World Bank, and the regional development banks can play a key role in advancing U.S. interests. But, in recent years they’ve surrendered to mission creep. Under the Biden Administration, the IMF’s management tried to turn the Fund into a 'World Bank Lite,' launching initiatives on climate change and social policy. "If the Trump Administration wants to pull back on the IMF’s mission creep, it can start by scrapping the Resilience and Sustainability Facility and focusing on the Poverty Reduction and Growth Trust," said Chairman Hill.
“Mr. Secretary, …Your vision to steer the IMF and World Bank back to their core missions, macroeconomic stability and economic development while cutting through mission creep is exactly what we need. By championing fiscal discipline, anti-corruption measures, and private sector-led growth, you’re paving the way for a sustainable global economy. America is done bankrolling China’s games and their trade scams. …America first must mean that America’s resources advance America’s interests,” said Rep. Warren Davidson (OH-08).
On the importance of countering China as the world’s largest creditor:
“For far too long, China has taken advantage of the international financial system and has become the world’s largest creditor. The IMF and World Bank’s focus on climate and social initiatives has resulted in a lack of accountability for the Chinese unreliable economic data, currency manipulation, and opaque predatory lending practices. In addition to the lack of accountability, this shift in focus to climate has forced many developing countries to turn to Chinese financing. The United States must leverage its leadership of the world stage to counter China’s growing influence as a global lender and put an end to these deceptive economic practices,” said Rep. Roger Williams (TX-25).
Secretary Bessent echoed his support for the work of the Committee:
On the Trump Administration’s economic agenda:
“The core components of the Trump economic agenda are trade, tax cuts, and deregulations. These are not standalone policies. They’re interlocking parts of an engine designed to drive economic growth and domestic manufacturing. Tax cuts and cost savings from deregulation raise real incomes for families and businesses, tariffs create an incentive for reshoring jobs and fair trade, and deregulation complements tariffs by making it easier to invest in energy and manufacturing projects. …In the first 100 days of the new administration, we have set the table for a robust economy that allows Main Street to grow. With Congress and the White House working hand-in-hand, we expect to see even more positive results over the next few months.”
On nuclear financing at the World Bank:
“This Administration supports an across-the-board effort to increase nuclear power for civilian use throughout the world, and we think that the World Bank should make that a key effort.”
On reforming the SDR process at the IMF:
“Mr. Chairman, we believe the SDR process at the IMF should serve the goals of the United States of America, and not other states. And as I said in my speech during IMF week, this Administration is aligned with you in your goals on the SDR, and furthermore, we believe the IMF needs to get back to basic in working with countries when there is a market failure in financial markets, rather than helping large, well-financed countries.”
