Say what you will about the Trump administration, they’re there when a desperate friend needs a bail out.
Driving the news: Argentine President Javier Milei is meeting with Donald Trump in NYC today. The link-up comes a day after U.S. Treasury Secretary Scott Bessent said that “all options” were on the table to stabilize Argentina’s economy as it endures economic volatility.
Catch-up: Milei came to power in 2023 on a radical libertarian platform. While his policies have helped cut the inflation rate from 300% to ~30% and exit a recession, some voters are starting to turn as they bristle against austerity measures and Milei’s corruption scandals.
- After Milei’s party lost in crucial Buenos Aires provincial elections this month, its peso began to free-fall. Plus, the country’s Merval index is the worst-performing stock index of 2025.
Big picture: The U.S. really wants to keep the friendly Milei government around. As U.S. influence in South America fades, Argentina has become its top ally on the continent.
- Bessent said an aid package could involve direct purchases of Argentine currency and dipping into the U.S. Treasury's US$22 billion reserve of emergency assets.
Why it matters: This ‘anything you want, you got it’ response to Argentina crystallizes a pillar of U.S. foreign fiscal policy under Trump: if you’re a close ally of the president, then the cash floodgates will open. If you dare push back (see: Canada, Brazil), then watch out.—QH