U.S. Bailing Out Milei for Mismanaging Argentina’s Economy: CNN

Donald Trump is bailing out Argentina in a move critics say has more to do with politics than economics or U.S. interests.

The Trump administration has argued that Argentina’s financial turmoil could spill over into other economies if not contained swiftly. (Photo: Molly Riley, The White House) 

That means $20 billion in taxpayer funds will be used to rescue a country led by one of President Trump’s close allies: chainsaw-wielding libertarian Javier Milei, Bryan Mena reported for CNN Business.

“Argentina faces a moment of acute illiquidity,” Treasury Secretary Scott Bessent wrote on X Thursday.

“The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets.”

The U.S. federal government has been shut down for nearly two weeks, while American businesses continue to reel from Trump’s ongoing trade war. Argentina is on the brink of financial collapse.

The country’s currency fell sharply after President Milei’s party suffered a significant defeat in elections last month, shaking investors’ confidence in his ability to implement economic reforms.

Since taking office in 2023, Milei has slashed government spending, cut regulations, and fired tens of thousands of public-sector workers.

The Trump administration has argued that Argentina’s financial turmoil could spill over into other economies if not contained swiftly.

Officials also warn that a deepening crisis could push Argentina—one of South America’s largest economies—closer to China. The next legislative elections in Argentina are set for Oct. 26.

On Thursday, Bessent confirmed on social media that the bailout is moving forward in two keyways.

He said the administration has finalized a $20 billion currency swap agreement with Argentina’s central bank, allowing it to exchange its local currency for U.S. dollars—essentially a $20 billion loan, experts say.

Trump also “directly” purchased an undisclosed amount of Argentine pesos. It is only the fourth time since 1996 that the U.S. has bought another country’s currency, according to the Federal Reserve Bank of New York.