It was revealed that the International Monetary Fund (IMF) removed economist Ricardo Reis, known for his statements criticizing US President Donald Trump's economic and customs tax policies, from his candidacy for chief economist at the last minute.
According to sources familiar with the matter speaking to the Financial Times, the IMF was preparing to announce the appointment of London School of Economics (LSE) Professor Ricardo Reis as Head of the Research Department and Economic Advisor at the beginning of the summer. However, the Fund backed down at the final stage of the appointment process.
Three sources speaking to the Financial Times stated that Chief's past criticism of Donald Trump's tariffs was behind the last-minute change.
Following the development, the IMF appointed Silvana Tenreyro, a former policy maker of the Bank of England (BoE) and LSE faculty member, to the post in July. Tenreyro took office as IMF Economic Advisor and Director of the Research Department on August 10.
Reis, known for his economic commentary in Portuguese and international media, had warned that the "freedom day" customs duties announced by Trump in April last year would raise prices for US consumers and cause a new wave of inflation.
Although IMF Managing Director Kristalina Georgieva is directly responsible for senior appointments, the United States, as the Fund's largest shareholder, has strong unofficial influence over the institution's decisions.
Georgieva withdrew her work focused on gender and climate change following criticism from US Treasury Secretary Scott Bessent, who wanted the IMF to focus more on core areas such as macroeconomic and financial stability.
Reis's removal from candidacy raised concerns within the IMF that a name closer to the Trump administration might be appointed as chief economist in the early stages of the process. However, with Tenreyro's appointment, these concerns diminished.
Both Reis and Tenreyro are among those whose works have been published in leading academic journals in the field of economics.
The process has brought the debates about the Trump administration's attitude towards economists and academics who criticize its trade policies back to the agenda.
Last year, Trump called on the bank's CEO, David Solomon, to dismiss Goldman Sachs Chief Economist Jan Hatzius, who stated that tariffs would harm the US economy.
Earlier this year, Kevin Hassett, one of Trump's advisors, argued that New York Fed economists, who published a report showing that the cost of US tariffs were borne by American businesses and consumers, should be "disciplined", and then softened their statements.
In his post on social media platform X in April last year, Reis stated that the cost of "freedom day" tariffs would be reflected on consumers.
In the podcast he participated in a month later, he said that Trump's tariffs would "immediately increase the prices of imported products" and make domestic production "more difficult, more expensive and more inefficient."
Tenreyro, who was appointed to office, also stated that tariffs could negatively affect economic growth, but showed a more cautious attitude compared to Reis.
The IMF did not make a direct statement regarding the reasons for Ricardo Reis's removal from candidacy.
An IMF spokesman, who declined to comment on the selection process, told the FT that the institution followed "strict confidentiality regarding the identities of candidates or process details" and that the process was conducted "rigorously and competitively".
The spokesperson expressed their satisfaction with Tenreyro's appointment and said, "Tenreyro brings academic excellence and extensive experience in monetary policy and macroeconomics to the Fund."
Reis refused to make a statement on the issue.
Tariffs remain a key element of the Trump administration's economic strategy aimed at revitalizing the US manufacturing industry.
The Trump administration's protectionist trade policies differ significantly from the free trade and global financial integration approach that the IMF has advocated for many years.
While the IMF Chief Economist leads the Research Department, which consists of more than 100 economists, he also plays an important role in shaping the institution's approach to global economic policies.
Tenreyro's predecessor, Pierre-Olivier Gourinchas, also stated in his statement to the Financial Times in June that the "eye for an eye" economic war between countries poses a serious risk for the global economy.
The removal of Ricardo Reis from candidacy at the last stage has brought the debate about the extent of influence of the US administration in high-level appointments in one of the world's most influential international economic institutions to the agenda again.
