Milei receives key support from the U.S. and consolidates the Argentine economic shift

The management of President Javier Milei has captured the attention of the main actors on the international stage, and the United States is no exception. In a turn that marks a clear sign of confidence, Scott Bessent, Secretary of the Treasury under Donald Trump's administration, recently expressed Washington's willingness to offer Argentina a line of credit through the Exchange Stabilization Fund (ESF).

This possibility, revealed during a private event organized by JPMorgan in Washington, represents a strong endorsement of the structural reforms that the new libertarian government has been pushing since December 2023.

This gesture is significant. The ESF, historically reserved for emergency situations and strategic assistance, has been used with extreme caution by the United States. The consideration of its application in favor of Argentina indicates not only a recognition of the seriousness with which fiscal adjustment is being carried out but also a geopolitical alignment in a world increasingly divided between statist and pro-market models.

From Collapse to Macroeconomic Order

Argentina was coming from a decade marked by the rampant expansion of public spending, structural fiscal deficits, inorganic monetary issuance, and uncontrolled inflation that, in 2023, exceeded 200% annually. To this were added record levels of poverty, rising unemployment, and a currency losing value day by day.

In that context, Milei's rise to power represented a total break with the traditional economic paradigm of Argentine politics. In a few months, his administration managed to implement a severe adjustment of public spending, with a historic reduction of the primary deficit. In March 2025, the financial surplus reached 0.2% of the accumulated GDP, something not seen since 2008.

Additionally, the government eliminated the monetary financing of the deficit, closing the main source of inflationary issuance. This allowed, in record time, a deceleration of monthly inflation, which went from levels above 25% in December 2023 to single-digit figures in March 2025, with a firm expectation of continuing to decrease.

Tangible Results

The effects of these policies are already beginning to reflect in key indicators. The government has met and exceeded the adjustment targets committed to with the International Monetary Fund, strengthening external and internal credibility. Revenue is beginning to recover thanks to a more formalized environment, while economic subsidies are being reduced.

Employment and signs of confidence in the private sector are beginning to translate into new hires, especially in export and technology sectors. Unemployment, which was nearing double digits in the second half of 2023, is beginning to show signs of reversal, with the private sector leading the recovery, standing at 6.4% in the 31 urban agglomerations.

A Geopolitically Significant Endorsement

The potential financial support from the United States, framed within the Trump administration, has not only economic implications but also political ones. Milei has explicitly aligned himself with the values of free markets, limited government, and respect for private property. This ideological and strategic alignment doesn't go unnoticed.

The signal sent by Bessent can be interpreted as an invitation to the markets to double down on their confidence in the Argentine transformation process.