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

US Treasury Secretary Scott Bessent asserts that the US will not incur financial losses from its substantial bailout package for Argentina. This assurance comes despite the ongoing depreciation of the Argentine peso to record lows, even with unprecedented levels of US economic support. The US has heavily invested in President Javier Milei, whose economic policies are being tested in crucial midterm elections. However, Milei's political standing has weakened recently, raising concerns about Argentina's economic stability. To support Milei, the US committed a $20 billion currency swap with Argentina's central bank, the largest such bailout by the US since 1995. Furthermore, Bessent pledged to secure an additional $20 billion from the private sector, demonstrating significant US government backing. Despite these efforts, including open market peso purchases, the currency has continued to fall. Bessent defends the bailout as being in America's interest, emphasizing support for an ally and stating the Exchange Stabilization Fund has never lost money. Domestically, the bailout faces unpopularity, with a majority of Americans disapproving. Opposition stems from farm interests concerned about competition and ranchers affected by increased beef imports. Bessent frames the intervention as vital for countering opposing forces in Latin America and setting a positive tone for the region. Future US support is expected to be tied to policy rather than the success of a particular leader, with developments after Sunday's elections being closely watched.