Chairman Hill: The United States Plays a Central Role in Shaping the International Financial System
Today, the House Financial Services Committee, led by Chairman French Hill (AR-02), is holding a Full Committee hearing to hear from Treasury Secretary Scott Bessent on how we can ensure U.S. leadership at the IMF and the World Bank advances American economic interests.
Read Chairman Hill's remarks as prepared for delivery:
"Good morning. I want to welcome Secretary Bessent back to the Committee.
"We thank you for being here todayand for your continued efforts to ensure that America’s leadership in the global economy advances the interests of American workers, businesses, and taxpayers.
"The United States plays a central role in shaping the international financial system.
"That influence reflects the global importance of the U.S. dollar, the size and depth of U.S. financial markets, and our longstanding role in critical institutions such as the International Monetary Fund and the World Bank.
"The United States is the leading shareholder in both of these institutions.
"That gives this Committee an important responsibility to ensure American interests are protected, and U.S. governance is subject to appropriate oversight.
"We must ensure these institutions remain focused on their core missions, operate transparently, and use their resources wisely, consistent with that core mission.
"Under the previous administration, the World Bank and IMF were pulled away from their core responsibilities by mission creep. For example, trying to transform the IMF to a climate development bank. That is not its role and distracts from its incredibly important mission.
"Fortunately, under the Trump Administration, we have seen a renewed emphasis on delivering measurable results through accountability and discipline at both the IMF and the Bank.
"The World Bank must remain committed to reducing poverty and promoting economic growth by directing its resources toward countries that genuinely need development assistance.
"For years, this Committee raised concerns about the World Bank continuing to provide billions of dollars in financing to China, the world’s second-largest economy and one of America’s foremost strategic competitors.
"China has enormous financial resources of its own. It is a major global creditor and uses state-directed investment to advance its economic and geopolitical interests around the world.
"American taxpayers should not be backstopping Beijing’s economic ambitions through the World Bank.
"That is why the World Bank’s decision to phase out its lending to China by 2031 is an important step in the right direction.
"We have also seen an important and long-overdue change in the World Bank’s approach to energy.
"In 2025, with a strong bipartisan push from this Committee by way of H.R. 1474, the International Nuclear Energy Financing Act, the World Bank took its first concrete step in decades toward reengaging with nuclear energy by agreeing with the International Atomic Energy Agency to receive nuclear expertise, support existing reactors, and advance the potential of small modular reactors.
"This year, we also saw the first U.S. contribution to a new Nuclear Energy Assistance Trust Fund at the Bank, which I hope will see additional funds from Treasury going forward.
"Developing economies need access to reliable and affordable electricity to grow, making this exactly the kind of practical, pro-growth approach these institutions should embrace.
"I commend the progress at the World Bank and hope we see this commitment translate into more projects and financing.
"While we have seen positive progress at the World Bank, concerns remain about the IMF’s approach to China.
"The IMF plays a critical role in promoting international monetary cooperation and safeguarding global financial stability. Fulfilling that mission requires rigorous economic oversight and transparency.
"China presents a major test of whether the Fund is willing and able to fulfill that responsibility.
"Its most recent Article IV review found that weak domestic demand, real exchange-rate depreciation, and reliance on exports have contributed to external imbalances and adverse spillovers for China’s trading partners.
"Identifying these problems is only the first step, and the IMF must be willing to speak clearly and consistently when the policies of the world's second-largest economy distort global markets.
"The Fund must continue to demand greater transparency and hold all its members to the same high standards.
"I have long argued that the IMF shouldn’t allow China a greater say in the organization until Beijing complies with those standards.
"That includes a greater role for its currency in the Special Drawing Rights basket.
"I want to thank you, Mr. Secretary, for working with the Committee on reforms to the Special Drawing Rights process, and the United States must use its leadership in these institutions to advance economic stability, promote growth, and protect the interests of American workers, businesses, and taxpayers.
"I look forward to discussing how the Administration is advancing these priorities and strengthening American leadership in the international financial system.
"I yield back."
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