The IMF applauds the US Treasury's commitment to supporting international institutions.

Everything indicates that a modus vivendi is emerging—at least for the moment—between the US Treasury and the multilateral financial institutions, the International Monetary Fund and the World Bank, which the Trump movement has accused of being vehicles of woke globalism.

It may be the latest in a series of signs in Washington that US President Donald Trump's charge against the economic status quo is beginning to run out of steam.

IMF Managing Director Kristalina Georgieva appeared visibly relieved at her first press conference with the IMF and World Bank meeting, following Treasury Secretary Scott Bessent's statement of support for the IMF on Wednesday.

Georgieva expressed her gratitude for "the Treasury Secretary's reiteration of the U.S. commitment to the IMF... We deeply value the voice of the United States," she said. She described Bessent's criticism of the "disproportionate time and resources devoted by the IMF to climate change, gender issues, and social issues" as "important issues regarding the Fund's priorities."

Bessent stated on Wednesday that “the IMF and the World Bank play critical roles in the international system. And the Trump administration is willing to work with them, as long as they remain true to their mission.”

The secretary ignored those in the so-called Project 25, developed by the Heritage think tank, who recommend "ending IMF and World Bank funding." Project 25 has furthered the radical agenda of supposedly efficiency cuts spearheaded by Elon Musk.

Georgieva didn't address the Trump administration's insistence on excluding social and gender considerations from its programs, returning the IMF to a more technocratic past. However, the managing director did defend IMF mechanisms such as the Resilience and Sustainability Facility, which provide financing to countries vulnerable to climate change. "We're only in the macroeconomics department, but if you're a country like Dominica and a hurricane can wipe out 200% of your Gross Domestic Product, what policies should you adopt?"

According to a World Bank report, the annual cost of adapting to a two-degree increase in global average temperature between 2010 and 2050 could reach $100 billion per year.

Overall, there is a growing sense in the assembly that the Trump administration is beginning to seek harmony with multilateral institutions and financial markets. Georgieva responded with satisfaction in her address to Trump's announcement that he had "no intention" of removing the Federal Reserve chairman. "Central bank independence is critical," she said.

Georgieva: “The independence of central banks is critical”

Likewise, the Wall Street Journal report that the Trump administration may be willing to cut the draconian tariffs against China announced earlier this year by as much as 50% to 65% sparked optimism at the headquarters of the two multilateral institutions. Georgieva welcomed the signs that "work is underway to resolve trade conflicts."

Overall, the IMF meeting attempted to defuse the confrontation with the administration. The IMF's growth forecasts for the United States helped. The IMF announced a downward revision of nearly one percentage point for US economic growth this year to 1.8%. This is more optimistic than the forecasts of many Wall Street analysts. Some journalists expressed surprise that the fund presented a report with less catastrophic expectations than the coverage of some major international media outlets.

To defend the IMF's relative optimism regarding US economic prospects, Georgieva raised a glass and showed it as half full. "I'm not going to say it's empty," she said.

While building bridges with Donald Trump, the Bulgarian director general was full of praise for Trump's ally in Buenos Aires, Javier Milei. After announcing that "this time is different" in reference to the Argentine government's austerity measures and applauding the ultra-liberal, self-described anarcho-capitalist's plan to "remove the state from where it shouldn't be," the IMF director general even made a direct intervention in that country's legislative elections.

“Let's hope the elections don't derail the desire for change,” he said, addressing the voters. “We urge Argentines to stay the course.”