The Banking Executive Issue - October 2025 Issue

H.E. SCOTT BESSENT, U.S. TREASURY SECRETARY In his first Annual Meetings as Treas- ury Secretary, Scott Bessent offered a distinctly American take. He de- fended the administration’s tariff strategy as a “rebalancing” aimed at securing fairer trade, while insisting the U.S. remained committed to the rules-based system. At the same time, he faced pointed questions about the U.S. fiscal trajectory, with public debt surpassing USD 38 trillion and projected to climb further. Bessent sought to reassure markets by highlighting planned measures to raise revenue and re-prioritize spending toward infrastructure, AI and strategic manufacturing. 2025 IMF–World Bank Meetings ISSUE 202 OCTOBER 2025 the BANKING EXECUTIVE 49 H.E. RACHEL REEVES, UK CHANCELLOR OF THE EXCHEQUER The UK’s chancellor, Rachel Reeves, used Washington to reinforce her “stability first” message. With UK public debt projected to peak around 106% of GDP by 2029, she ac- knowledged that fiscal space is tight and signaled that a mix of tax in- creases and spending restraint is likely in the forthcoming budget, even as the government seeks to pro- tect green infrastructure and social investment. Her remarks underlined a broader theme: many advanced economies are entering an era of more con- strained fiscal choices, which will shape global rates, capital flows and the availability of concessional re- sources. GEOPOLITICS & POLICY: THE MID- DLE EAST BACK AT THE CENTRE Several interventions explicitly bridged geopolitics and economics. Banga’s references to reconstruction in Gaza and Ukraine, and the World Bank’s convening of expert groups with regional specialists, signaled that the Bank is preparing to move quickly as political milestones are reached. Al-Jadaan’s comments on Syria made clear that Gulf capital is already po- sitioning for a new phase of invest- ment, in coordination with multilateral institutions. Georgieva noted that the IMF had resumed a