U.S. Treasury official Jay Shambaugh says withdrawing the U.S. from the IMF and World Bank would be “a step backward."

The U.S. Treasury's top economic diplomat on Friday called on the International Monetary Fund and multilateral development banks to work on new ways to provide short-term liquidity support to low- and middle-income countries to head off debt crises.

The plan "will require hard work and innovation" at the international financial institutions, US Treasury official said