Overview

• Treasury Secretary Scott Bessent said Javier Milei is restoring stability and insisted markets are not losing confidence in the Argentine leader.
• Bessent confirmed talks over a roughly $20 billion plan that could include a currency swap, potential primary and secondary bond purchases, and a direct credit line via Argentina’s Fondo de Estabilización de Cambios.
• The Trump administration’s political backing was underscored by Bessent’s statements and by adviser Kevin Hassett, who said the White House would be an unconditional ally of Argentina.
• Senator Elizabeth Warren criticized directing emergency funds to buoy a foreign currency, and the American Soybean Association said Argentina’s export moves are undercutting U.S. farmers as soy prices fall.
• Economists warned of high risk given Argentina’s default history and the lack of clear conditionality or exit strategy, with comparisons to Mexico’s 1995 rescue deemed less applicable to Argentina’s situation.