U.S. Prepared to Support Argentina with “Large and Forceful” Action, Treasury Secretary Says
U.S. Treasury Secretary Scott Bessent said Monday that the administration is prepared to offer strong support to stabilise Argentina’s economy, signalling backing for President Javier Milei and his economic team.
“All options” are being considered, Bessent told reporters, including swap lines and direct currency purchases. However, he added that no actions would be taken until after meetings with President Milei on Tuesday in New York, where he is scheduled to meet both Bessent and President Donald Trump on the sidelines of the United Nations General Assembly.
Bessent emphasised the seriousness of the U.S. position, stating, “any U.S. action would be ‘large and forceful,’” while making clear that officials would wait to assess market conditions before deciding on specific steps.
“We’ll see where the markets are and what the level of outflows are – or maybe the outflows turn into inflows – but no one should doubt the resolve of this administration, or my resolve,” Bessent said.
While declining to provide details on what specific tools might be used, he reiterated,
“I can tell you that it will be large and forceful.”
Bessent, formerly a hedge fund executive, said he does not see signs of financial contagion from the crisis, and that the U.S. views Argentina’s implementation of reforms as going “quite well.” He added that the administration hopes to bolster what it sees as a broader political shift in Latin America, with potential changes in countries such as Colombia.
Bessent initially announced the U.S. position in a post on X, saying, “all options were on the table.”
He listed potential support tools as including “swap lines, direct currency purchases, and purchases of U.S. dollar-denominated government debt from Treasury’s Exchange Stabilization Fund.”
He clarified that the U.S. would not impose new terms or conditions, saying,
“I can’t speak for the president, but as far as Treasury is concerned, there’s no conditionality.”
Argentina signed a $20 billion loan agreement with the International Monetary Fund in April, requiring it to remove currency controls and allow more flexibility for the peso. Milei is now seeking broader support for his economic agenda, especially following the ruling coalition’s legislative defeat in Buenos Aires province — a result that has added pressure to his austerity-driven approach.
Argentina’s central bank sold $678 million on Friday — its largest daily dollar sale in nearly six years — as it worked to meet surging demand for foreign currency and defend the peso. Over three days, the bank has sold $1.1 billion.
In a social media post, Bessent reaffirmed Washington’s faith in Milei’s reforms:
“We remain confident that President @JMilei’s support for fiscal discipline and pro-growth reforms are necessary to break Argentina’s long history of decline.”
Bessent said the IMF cannot alter Argentina’s program until after the country’s national elections. He noted that he had spoken with IMF Managing Director Kristalina Georgieva over the weekend and was “very satisfied” with the institution’s stance.
It remains unclear whether Georgieva will meet with Milei in New York during the UN events.
Asked about any input from Wall Street or major banks regarding intervention, Bessent responded,
“None of this is based on U.S. market positions. They’re free to take gains or losses. Our markets team interacts with investors every day on a variety of topics.”
He also dismissed speculation about Elon Musk’s possible involvement in discussions, saying, “not that I know of.”
Regarding the causes of Argentina’s current financial turbulence, Bessent said it appeared to stem from investor caution related to past experiences under earlier governments.
“Either there’s some risk management or a rush for the exit with the idea that the opposition could do well in the upcoming election,” he said.
He added that it remains uncertain whether market behaviour will ultimately support Milei or harm Argentina’s real economy.
