US Treasury secretary Jack Lew has called for the International Monetary Fund to play a more aggressive role in policing exchange rate fluctuations, global imbalances and its members’ failures to live up to commitments to boost ailing global demand.
In a speech aimed at reasserting US leadership over the global financial system, Mr Lew called for “new players” such as the China-backed Asian Infrastructure Investment Bank to live up to the standards set by established institutions such as the IMF and World Bank.
The call from the two institutions’ biggest shareholder came as finance ministers and central bankers prepare to descend on Washington for their spring meeting this week. Growing concerns about the fragile recovery in the world economy mean that the IMF is widely expected to cut its 3.4 per cent global growth forecast today.