The Bank of England governor has called for continued US support for two major global economic institutions.
Andrew Bailey told the BBC that the Trump administration is “tracking very closely” whether it will change its support for the International Monetary Fund and the World Bank.
The two agencies have been caught up in White House executive orders for review by the United Nations (UN) and other international organizations, according to sources in Washington.
“It’s very important that there is no fragmentation of the global economy,” Bailey said.
He said, “The majority of that is supporting and engaged in institutions like the multilateral institutions that help the global economy run, the IMF, and the World Bank. That’s really important.”
Financial ministries and central banks around the world are raising concerns among central banks around the world as fundamental changes to the global financial system currently floating in Washington, D.C.
“Project 2025” proposed a blueprint for President Trump, written by figures, currently a major White House staffer, and recommended withdrawal from the agency and ending financial contributions.
The agency said it “supports economic theories and policies that oppose American principles, where free markets and government principles are limited.”
Following the White House executive order, all international intergovernmental organizations with which the United States is a member will be reviewed to determine whether they are “invertible to the interests of the United States.”
A six-month review may provide recommendations for withdrawal to President Trump.
A group of 20 members, the G20 sources, or 20 clubs to meet to discuss economic and political issues around the world, during his first term, Trump’s team was IMF at the 2018 Buenos Aires Summit He said he proposed to abolish the
The IMF and the World Bank are specialized bodies of the United Nations.
The United States is the largest shareholder and bank in both funds and banks created by the postwar Bretton Woods Conference 80 years ago.
The IMF provides last resort loans to financially struggling nations and investigates economic issues.
The World Bank gives developing countries money and cheap loans to reduce poverty and develop.
The Trump administration has yet to appoint staff in the sector, but USAID development spending is currently the focus of Elon Musk’s government efficiency reduction.
Some members of the administration are thought to be particularly focused on the World Bank’s loans to China.
Asked about the possibility that the US would leave the fund, the IMF said yesterday it had a “long history” of “cooperating with consecutive US administrations.”
