The Briefing How will the US engage with the IMF and World Bank?
Apr 24, 2025
Erin Burnett, a Senior Fellow at the Democratic Strategy Initiative in Berlin, and Nick Manese, Design Editor at Monocle reporting from Jakarta, engage in a riveting dialogue about the U.S.'s evolving role in the IMF and World Bank. They discuss America's commitment to fair trade amidst global economic shifts and China's growing influence. Meanwhile, Manese shares insights from the Chiefs Conference, highlighting the intersection of design and business, particularly with Indonesian furniture and eco-friendly innovations. The blend of economic policy and cultural creativity makes for an intriguing conversation.
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US Strategy on IMF and China
- The US wants to strengthen its influence on IMF and World Bank policies, especially regarding support decisions for countries.
- It seeks to reclassify China from a developing country and oppose its export-led growth model in favor of domestic demand.
Markets Influence US Tariff Policy Shift
- The US shift to a more conciliatory tone on tariffs and commitment to economic institutions responds to market pressures.
- Markets signal that prolonged trade wars risk inflation and economic harm, making Trump reconsider his stance.
Tariff Impact on Prices and Supply
- Tariffs are already disrupting supply chains and will eventually drive price inflation if maintained.
- Currently, firms use inventories and households save more, delaying the consumer price impact but not preventing it.