US Treasury warns against withdrawing from IMF and World Bank
- Jay Shambaugh, a U.S. Treasury official, warned against withdrawing from the IMF and World Bank, stating it would harm economic security.
- His comments were made in relation to the Project 2025 proposal, which suggests a potential Trump administration could consider such a withdrawal.
- Shambaugh concluded that U.S. leadership in these institutions is vital for maintaining influence and stability in global economic matters.
On October 11, 2024, U.S. Treasury official Jay Shambaugh expressed concerns regarding proposals for the United States to withdraw from the International Monetary Fund (IMF) and World Bank. Speaking at the Atlantic Council, he emphasized that such a move would undermine U.S. economic security and diminish the country's influence in global financial matters. This statement comes in light of the Project 2025 proposal, which suggests that a potential Trump administration could consider pulling out of these institutions. Shambaugh highlighted the historical context of similar proposals, asserting that evidence shows the U.S. benefits from its involvement in these organizations. The IMF and World Bank play crucial roles as lenders of last resort, providing financial assistance to struggling economies and promoting stability through reforms. The upcoming annual meetings of these institutions in Washington are expected to further highlight the importance of U.S. leadership in global economic governance.