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2d ago

IMF Faces Pressure to Refocus on Core Mandates Amid Rising Trade Tensions

The IMF commits to addressing balance-of-payments crises while responding to U.S. demands for reforms and global trade uncertainty.

Secretary of the IMF and Secretary’s Department Director Ceda Ogada, Mohamed Al Hussaini, Minister of Financial Affairs for the United Arab Emirates, Mercy Tembon, Vice President and Corporate Secretary The World Bank Group and U.S., Federal Reserve Chair Jerome Powell prepare for the International Monetary and Financial Committee (IMFC) plenary session at the IMF and World Bank's 2025 annual Spring Meetings in Washington, U.S., April 25, 2025. REUTERS/Ken Cedeno
Finance ministers prepare for the International Monetary and Financial Committee (IMFC) plenary session at the IMF and World Bank's 2025 annual Spring Meetings in Washington, U.S., April 25, 2025. REUTERS/Ken Cedeno
Deputy Managing Director of the International Monetary Fund (IMF) Gita Gopinath, International Monetary Fund (IMF) Managing Director Kristalina Georgieva, International Monetary and Financial Committee (IMFC) chair Saudi Arabia's Finance Minister Mohammed Al-Jadaan, and Secretary of the Fund and Secretary’s Department Director Ceda Ogada, pose before the International Monetary and Financial Committee (IMFC) plenary session at the IMF and World Bank's 2025 annual Spring Meetings in Washington, U.S., April 25, 2025. REUTERS/Ken Cedeno
U.S. Federal Reserve Chair Jerome Powell and Pierre-Olivier Gourinchas, chief economist at IMF talk following the IMFC Breakfast at the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., U.S., April 25, 2025. REUTERS/Ken Cedeno

Overview

  • U.S. Treasury Secretary Scott Bessent criticized the IMF for 'mission creep,' urging a sharper focus on macroeconomic stability and confronting China's economic practices.
  • IMF Managing Director Kristalina Georgieva reaffirmed the Fund’s commitment to its core mandate while maintaining limited support for climate resilience in vulnerable countries.
  • The IMF’s policy committee highlighted escalating trade tensions as a significant risk to global growth, financial stability, and market conditions.
  • The IMF revised its 2025 global growth forecast downward to 2.8%, citing trade disputes and economic imbalances, including a slowdown in China’s growth to 4%.
  • Georgieva called for urgent resolution of trade policy disputes and emphasized the need for structural reforms to address economic vulnerabilities.