Trump's Non-Bailout Promise Raises Eyebrows in Argentina

In a meeting on the sidelines of the United Nations General Assembly, President Donald Trump, alongside Treasury Secretary Scott Bessent, stopped short of committing to a financial bailout for Argentina amidst its economic difficulties. Trump, speaking to reporters on Tuesday, noted that while the U.S. will offer assistance, he believes Argentina does not need a bailout.

Bessent indicated that the Treasury is working with Argentina to secure favorable debt terms and other measures to stabilize the nation. He mentioned the possibility of utilizing the Exchange Stabilization Fund to purchase Argentine currency or sovereign debt. Argentina remains a significant borrower from the International Monetary Fund, with $41.8 billion in outstanding credit as of August 31.

Trump's plan has sparked criticism, as some argue it's a political maneuver to aid a personal ally ahead of a crucial election. Senator Elizabeth Warren voiced concerns over using U.S. funds to influence foreign markets, questioning the potential impact on American citizens during economic uncertainty. Argentina, under Milei's leadership, faces significant challenges, including high inflation, recession fears, and political discontent.