U.S. will not lose money on Argentina bailout, Bessent promises

The U.S. will not lose money on its massive bailout of Argentina, Treasury Secretary Scott Bessent said Sunday, despite the continued weakening of the Argentine currency.Why it matters: American intervention in Argentina's economy so far hasn't paid off, with the peso falling to record lows despite unprecedented levels of support. The big picture: The U.S. has gone all-in on President Javier Milei, who faces crucial midterm elections Sunday that are effectively a referendum on his inflation-slashing economic policies. But Milei's grip on power has weakened in recent months, throwing his economy's stability into question.Driving the news: In order to rescue Milei, the U.S. pledged a $20 billion currency swap with the Argentine central bank, the largest American bailout of another country since Mexico in 1995.Bessent also pledged to organize another $20 billion in aid from the private sector, putting the full might of the U.S. government behind saving Argentina in a manner with little recent precedent. On top of those deals, the U.S. has also been buying Argentine pesos in the open market in recent weeks, though those steps haven't helped — the peso's fallen another 10% in the last month despite the Treasury's efforts. What they're saying: Bessent, in a series of interviews on Sunday morning TV news shows, defended the package as being in America's interests."It is America first because we are supporting a U.S. ally. There will be no taxpayer losses," Bessent told NBC's "Meet the Press."He similarly told CBS's "Face the Nation" that the Exchange Stabilization Fund, the source of the $20 billion swap, "has never lost money. It will not lose money this time."The intrigue: The Argentina rescue has become increasingly unpopular at home, despite the government's assurances. In the latest Economist/YouGov poll, only 20% of respondents said they strongly or somewhat approved of the package, against 56% who disapproved. Farm interests oppose the deal because Argentina has been selling huge quantities of soybeans to China, while U.S. farmers are shut out. Ranchers oppose Trump's recent move to quadruple Argentine beef imports in an effort to lower retail prices. Yes, but: Bessent framed the intervention in Argentina in existential terms, describing it as an effort to support an ally and counter forces in other countries less aligned with Trump policy."We want to set the tone in Latin America," Bessent told NBC."I would rather extend a swap line than be shooting at the boats carrying drugs, as we're having to, coming out of Venezuela."What to watch: What happens after Sunday's elections. Trump has suggested the level of U.S. support will be conditioned on how well Milei does, though Bessent has clarified that the U.S. position is tied to policy, and not one leader in particular.

Comments

World news

Trump and Xi set to ‘consummate’ TikTok deal during China trade talks: Live updates

Independent

Comments

Similar News

U.S. talks are Ottawa’s ‘sole responsibility’, Carney says as B.C. promises anti-tariff ads of its own

Canadian snowbirds turning their backs on U.S. as a winter destination: poll

Carney claims feds have ‘sole responsibility’ for U.S. talks

Chinese and U.S. officials tentatively agree to avert 100 percent tariffs

Carney says Canada ‘stands ready’ to negotiate with U.S. after Trump promises more tariffs over Reagan ad

The pipeline for Ph.D.s out of U.S. universities is shrinking

What to know about the U.S. forces closing in on Venezuela

Chinese and U.S. Officials Reach Framework of a Trade Deal

Trump says he’ll raise U.S. tariffs on Canada by 10% after Reagan ad

Carney in Asia to promote Canada as reliable trade partner amid tensions with U.S.

Varcoe: 'Too many chefs in the kitchen': Alberta business leader hopes for calmer heads in latest U.S.-Canada trade spat

Saskatchewan government calls upon Canada, U.S. to resume trade talks after latest Trump tirade

How U.S. military strikes on boats in the Caribbean have impacted Trinidad and Tobago

Facing Lost Trade With the U.S., Carney Heads to Asia

Pumpkin Spice Lattes, a Favorite U.S. Fall Drink, Divide Europe

U.S. sends aircraft carrier to South America in major escalation of military firepower

U.S. sanctions Colombia's president, deploys aircraft carrier in new escalation in Latin America

U.S. military sends aircraft carrier to Latin America in major escalation

'Make or break moment': Supreme Court is set to rule on Trump using troops in U.S. cities

Is the U.S. Ready for War With China?

World news

Trump and Xi set to ‘consummate’ TikTok deal during China trade talks: Live updates

Big 12 lands season-high 5 teams in the AP Top 25, No. 9 Vandy's ranking highest since 1937, LSU out

Putin is showing off a new nuclear-capable weapon. What we know about the Burevestnik missile

Man dressed in Nazi uniform arrested for assaulting a woman outside of Georgia college bar

Trump and Kim Jong-un could be primed for a surprise meeting during the president’s Asia trip, former advisor warns

Face of ‘devil monster’ who raped, tortured and killed 12-year-old girl in crime that shocked France

Bosses could still sack new hires under ‘day one’ workers’ rights compromise

After Powell’s victory and Caerphilly, Starmer faces an impossible balancing act

I’ve written about my divorce – but even I couldn’t do what Lily Allen has done

Graham predicts Trump's war on "narco-terrorists" will expand to land strikes

Israel allows Red Cross and Egyptian teams into Gaza as search for bodies of hostages widens

What eight wars has Trump claimed to have ended?

Moment jackknifed lorry crushes car killing two after losing control on slippery road

German police bust an art forgery ring trying to sell fake Picasso, Rembrandt works

Hurricane Melissa Could Hit as One of Jamaica’s Strongest Storms Ever

Palestinian Leader Lays Out Succession Plan, Elevating Deputy as Apparent Heir

BCGEU says tentative agreement reached in historic strike

Calgary petting zoo, farm remains closed as 20 people referred for avian flu testing

Hurricane Melissa threatens Jamaica, Haiti with flooding

Blue Jays fans’ Canadian kindness on display

Louvre robbery suspects arrested week after jewel heist, prosecutor says

A dancing Trump arrives in Malaysia to kick off Asia tour

Trump’s final words on Jan 6 to Mike Pence revealed

Trump showcases trademark dance moves as he is welcomed to Malaysia

How Ukraine and Russia are playing out a deadly cat and mouse drone war from underground bunkers

Ukraine ready to fight for the next three years, says Poland’s PM Tusk

Gavin Newsom won’t rule out running for president in 2028, says he’s focused on midterms first

YouTuber Mr Crafty Pants arrested for alleged possession of sexual images of children

Putin’s boast of new ‘Flying Chernobyl’ missile is all talk, says expert

‘I’m an asylum seeker – my hotel is closing but I don’t know where I’m going’

Inside the British camp training Ukrainians to fight Putin

Newsom, Harris hint at 2028 White House runs

Ireland's president elect is a left-wing, anti-establishment figure who is outspoken on Gaza

US and China say trade deal drawing closer as Trump and Xi prepare for meeting

Egypt Aids Search for Bodies of Dead Captives in Gaza

Eberle scores twice as surging Kraken beat Oilers 3-2

Recipe: Butter-poached halibut

Why the term ‘mainstream music’ is outdated

British tourist killed after ‘hotel balcony collapses’ in Lanzarote

Independent Arabia receives Press Freedom Award on behalf of its late correspondent Maryam Abu Daqqa

China holds what the US needs – but Trump’s tantrums could blow it all up

Inside Russia’s tactics to ‘flood’ Europe with migrants as a weapon of war

Tuition fees raised without risk assessment for cash-strapped universities

The Ollie Lawrence puzzle confronting England this autumn

U.S. will not lose money on Argentina bailout, Bessent promises

Farm owner Bessent on soybean crisis: "I have felt this pain too"

Imprisoned mayor of Istanbul is to be questioned over espionage charges

New mum dies after doctors leave bandage inside her body during childbirth

Disgraced peer Michelle Mone snaps up £10m Florida pad despite £122m PPE scandal

Sick Jeffrey Epstein chatbot encourages thousands of teenagers to 'spill secrets'

Will Trump's 'peace deal' solve Thailand-Cambodia dispute?

US and China agree framework of trade deal ahead of Trump-Xi meeting

Russia says it has tested nuclear-powered Burevestnik missile

Georgia arrests three for trying to illegally buy 2kg of uranium

It’s tough to watch where N.B. is headed: Higgs

Brit tourist, 56, killed in 20ft plunge after ‘hotel railing broke’ at holiday resort

Trump administration tells Colorado to stop importing gray wolves from Canada