Overview

• During a White House meeting, President Trump said U.S. support would be halted if Javier Milei’s party loses the Oct. 26 legislative elections.
• The U.S. Treasury this month began directly buying pesos and set a framework for a roughly $20 billion swap or credit line with Argentina’s central bank.
• Argentine equities fell by more than 4% after Trump’s remarks, reflecting investor concern over the durability of U.S. backing.
• American farming groups and Democratic lawmakers criticized the intervention, arguing against using U.S. resources to bolster Argentina’s economy.
• Milei remains a key Trump ally as he seeks to strengthen his minority in Congress during a period of economic strain, political setbacks, and recent scandals.