The International Monetary Fund has reportedly dropped Portuguese economist Ricardo Reis from consideration for its chief economist post after he publicly criticised Donald Trump's tariff agenda. The decision, first reported by the Financial Times, has raised questions about the fund's independence as the Trump administration intensifies pressure on economists who question its trade policies.
Reis, a professor at the London School of Economics and a respected macroeconomist, had been seen as a frontrunner for the role. According to three anonymous sources cited by the British newspaper, the IMF backed away after learning of his views on US tariffs. Reis had warned that the levies could push up prices in the United States and potentially trigger a new wave of inflation, a stance that put him at odds with the White House.
The IMF ultimately appointed Silvana Tenreyro, a former Bank of England policymaker and also a professor at the London School of Economics, to the position in July. Tenreyro, an Argentine-British economist, is known for her work on monetary policy and international economics. Sources told the Financial Times that while Tenreyro also believes tariffs hinder economic growth, she has been less openly critical of the Trump administration than Reis.
Reis declined to comment on the story or to speak to the Financial Times. The IMF refused to discuss the selection process, citing confidentiality, and insisted that the choice had been “rigorous and competitive”.
Pressure on critical economists
The episode comes against a backdrop of mounting pressure from the Trump administration on economists who publicly oppose its tariff policies. The president has repeatedly attacked experts who question the benefits of protectionism, and his team has sought to install loyalists in key economic positions across Washington. The IMF, though headquartered in Washington, is a multilateral institution with 190 member countries, and its chief economist plays a crucial role in shaping global economic analysis.
Reis's removal has sparked concern among European economists and policymakers, who see the IMF as a guardian of evidence-based policy. The fund's credibility depends on its ability to appoint the best candidates regardless of political pressure, said one European official who asked not to be named. If the selection process is seen as politically motivated, it could undermine trust in the institution's advice.
The controversy also highlights the broader transatlantic divide over trade policy. While the Trump administration has imposed tariffs on steel, aluminium, and a range of consumer goods, the European Union has responded with its own countermeasures, including retaliatory tariffs on US products. The EU has repeatedly warned that tariffs raise costs for businesses and consumers, and could slow global growth.
For Portugal, Reis's treatment is a sensitive issue. The country has produced a number of prominent economists who have held top international posts, and many in Lisbon see Reis as a natural successor to that tradition. His academic work on inflation, fiscal policy, and central banking has earned him international recognition, and he is widely considered one of Europe's leading macroeconomists.
The IMF's decision may also have implications for its relationship with Europe, which holds significant voting power within the institution. European members have traditionally pushed for the fund to maintain its independence and technical rigour, and some have privately expressed unease about the politicisation of senior appointments.
In the meantime, Tenreyro has begun her term as chief economist, a role that involves leading the IMF's research department and advising on global economic trends. She has already signalled that she will take a pragmatic approach, focusing on the challenges of inflation, debt, and productivity growth. Whether she can navigate the political pressures that appear to have derailed Reis's candidacy remains to be seen.
The episode is a reminder that even the most technical of institutions are not immune to the political currents of the day. As the Trump administration continues to escalate trade disputes with allies and rivals alike, the role of economists who are willing to speak truth to power has never been more important. For now, the IMF has chosen to play it safe, but the cost to its reputation may be harder to measure.
