The International Monetary Fund said Asian central banks generally have room to lower interest rates to support domestic demand and offset the impact of the escalating global trade war, with the region in much stronger shape than before the Asian financial crisis.

Many Asian central banks have room to ease monetary policy to cushion the blow to their economies from U.S. tariffs, a senior International Monetary Fund official said on Thursday, after the fund cut its GDP estimates for the export-driven region.

The head of the International Monetary Fund downplayed its work related to climate change after US Treasury Secretary Scott Bessent called for the lender to return to its core focus as economic stabilizer.

US Treasury Secretary Scott Bessent's criticism of the International Monetary Fund raised "a number of important issues" to grapple with, the head of the Washington-based institution said Thursday."He raised a number of important issues and priorities for the institution that I look forward to discussing with the US authorities and the membership as a whole,

IMF Chief Kristalina Georgieva stated on Thursday that the Fund will implement Washington's suggestions regarding its policy. The day before, U.S. Treasury Secretary Scott Bessent had criticised the IMF and the World Bank,

Treasury Secretary Scott Bessent said the U.S. remains committed to playing a leadership role in the IMF and World Bank but wants to see changes.

U.S. Treasury Secretary Scott Bessent on Wednesday called on the International Monetary Fund and World Bank to refocus on their core missions of macroeconomic stability and development, arguing that they have strayed too far into vanity projects such as climate change that have reduced their effectiveness.

"To the contrary, it is a call for deeper collaboration and mutual respect among trade partners.” Although Bessent said the IMF and the World Bank are “falling short,” he stopped short of calling for the U.