U.S. Treasury Secretary Bessent: 'America First' is not 'America Alone'

On April 23, a speech sent U.S. stocks soaring and Chinese American Depositary Receipts (ADRs) surging. The Dow Jones Industrial Average rose over 1,000 points; the Nasdaq Composite gained more than 4%; and the Nasdaq Golden Dragon China Index surged over 4%. In the United States, whose words carry such immense influence? Aside from President Trump and Federal Reserve Chair Powell, U.S. Treasury Secretary Bessent is among that select few. On Wednesday, Treasury Secretary Bessent delivered the keynote address at the Institute of International Finance (IIF) Global Outlook Forum. He opened by recalling how, in the final months of World War II, Western leaders convened the world’s foremost economists at a tranquil mountain resort in New Hampshire to lay the foundations for a new postwar financial architecture—the Bretton Woods system—which established the monetary basis for subsequent economic globalization. The Founding Mission of International Financial Institutions To promote and safeguard global cooperation, they also established the International Monetary Fund (IMF) and the World Bank. The founding purpose of the IMF and the World Bank was to better coordinate national interests with the international order, bringing stability and order to an otherwise turbulent world. Ultimately, the core mission of these international financial institutions is to restore and maintain global equilibrium. Yet, after decades of evolution, today’s international financial system is almost entirely unbalanced. Having previously observed financial policymaking from the outside, Bessent—now a policymaker himself—feels more acutely the importance and urgency of helping the international financial system return to order. Bessent stated: “But to achieve this goal, we must first restore the IMF and the World Bank to their original founding missions. These institutions retain irreplaceable value—but their functions have drifted off course, straying far from their intended paths.” To restore balance to the global financial system, the IMF must exercise clear-sighted and decisive leadership—and so too must the World Bank. A highlight of Bessent’s speech was his solemn declaration: “‘America First’ is not ‘America Alone.’” The ‘America First’ policy does not signify retreat; rather, it seeks to strengthen America’s leadership role in international affairs—including within international institutions like the IMF and the World Bank. By actively assuming a stronger leadership role, the ‘America First’ policy aims to reshape fairness in the international economic system through more robust leadership. Bessent believes successive U.S. administrations have long labored under a misconception: that America’s trading partners would voluntarily adopt measures to achieve global economic balance. In reality, however, the United States has long endured massive and persistent trade deficits. These chronic, large-scale trade deficits stem precisely from unfairness embedded in the trading system. Bessent said: “Other countries, through deliberately designed policies, have hollowed out U.S. manufacturing and weakened our critical supply chains—posing threats to both America’s national security and economic security.” He argues that such massive, long-standing trade imbalances are unsustainable—not only for the United States, but for other economies worldwide as well. Thus, the Trump administration has taken decisive action, imposing reciprocal tariffs on countries around the globe. He added that, following President Trump’s announcement of the tariff policy, over one hundred countries have proactively contacted the United States, expressing willingness to jointly advance global trade rebalancing. In articulating his vision for global economic rebalancing, he placed particular emphasis on China.

How do you assess U.S. Treasury Secretary Bessent’s speech at the IIF Global Outlook Forum (April 23, 2025)?

Moderator: It is with the utmost honor that I invite our distinguished keynote speaker—The Honorable Scott Bessent, Secretary of the U.S. Department of the Treasury. On January 28, 2025, Mr. Bessent was sworn in as the 79th U.S. Secretary of the Treasury. In this role, he shoulders the Treasury Department’s broad mandate: fostering domestic and international prosperity to sustain a strong economy, promote growth, and create jobs for all Americans—while also managing the federal government’s finances. He is further tasked with strengthening U.S. national security by countering economic threats and safeguarding the financial system. With four decades of experience in global investment management across 60 countries—and close engagement with international leaders and central bank governors—Mr. Bessent is widely recognized as an expert in currencies and fixed-income markets. He is also a frequent contributor to economic journals and business publications. Later, Secretary Bessent will deliver his keynote address and engage in a dialogue with Tim Adams. Now, please welcome Secretary Bessent. Bessent: Thank you for that generous introduction—I am truly honored to be here. In the final months before the end of World War II, Western leaders convened the world’s most eminent economists at a serene, mountain-encircled resort in New Hampshire to lay the groundwork for a new financial architecture. The resulting Bretton Woods system established the ‘Pax Americana.’ Its architects understood clearly: the global economy demands global cooperation. To that end, they created two institutions—the IMF and the World Bank. Born from profound geopolitical and economic turbulence, these two institutions were founded to better align national interests with the international order—to bring stability to an unstable world. In short: to restore and preserve balance. This remains the fundamental objective of the Bretton Woods institutions—but today’s international system exhibits imbalance everywhere. The good news is: this status quo is not irreversible. Today, I will outline a roadmap for restoring balance to the global financial system—and to the institutions that underpin it. For most of my career, I observed financial policymaking from the outside; now, I examine it from within. I look forward to partnering with you all to rebuild the international order—but first, we must restore the IMF and the World Bank to their founding missions. These institutions retain enduring value—but their missions have drifted, causing them to lose their way. We must implement critical reforms to ensure they serve stakeholders—not the reverse. The imbalance I refer to is most evident in trade. The United States is taking action to rebalance global trade: successive U.S. administrations wrongly assumed trading partners would pursue policies conducive to global economic balance—yet we confront the stark reality of massive, persistent deficits. Deliberate policy choices by other countries have hollowed out U.S. manufacturing and weakened critical supply chains—endangering our economic security. President Trump has taken forceful measures to correct these imbalances and their adverse effects. Today’s popular notion of ‘sustainability’ often centers on climate change—but I emphasize economic and financial stability: a sustainability that lifts living standards and keeps markets functioning. International financial institutions must focus squarely on this objective to fulfill their missions. China, in particular, requires economic rebalancing. Its current export-oriented manufacturing model is exacerbating imbalances with its trading partners. This unsustainable model harms not only China, but the entire world. We stand ready to assist China in transitioning toward a domestic-demand-driven economy—a shift urgently needed for global rebalancing.

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