The U.S. government has directly intervened in Argentina's volatile economy by purchasing Argentine pesos and finalizing a $20 billion currency swap with the country's central bank, according to Treasury Secretary Scott Bessent. The rare intervention comes as Argentina struggles with spiraling inflation, depleted foreign reserves, and political turbulence ahead of key midterm elections.

Bessent confirmed the deal after four days of high-level meetings in Washington with Argentine Economy Minister Luis Caputo. The swap is designed to stabilize the country's battered currency and financial markets, but it has already drawn sharp criticism from U.S. farmers, Democratic lawmakers, and even some policy analysts.

Critics argue the move is at odds with President Donald Trump's "America First" policy. The backlash stems from U.S. farmers who have seen their own soybean exports undercut by a wave of Argentine shipments to China. Now, many view the financial support as an indirect bailout of a competitor. Meanwhile, Democrats on Capitol Hill accuse the administration of favoring a controversial foreign leader while neglecting domestic economic concerns.

"It is inexplicable that President Trump is propping up a foreign government, while he shuts down our own," said Sen. Elizabeth Warren, referencing the ongoing federal shutdown. A group of Senate Democrats swiftly introduced the "No Argentina Bailout Act", which would bar the Treasury from using the Exchange Stabilization Fund to assist Buenos Aires.

Treasury Secretary Bessent has insisted the deal is not a bailout. "The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets," he posted on social media.

Argentina's President Javier Milei, a libertarian economist and vocal Trump supporter, hailed the agreement, calling the U.S. a "closest ally" in a shared vision of economic freedom and hemispheric prosperity. His administration welcomed the market reaction: Argentine bonds surged 10%, and the Buenos Aires stock exchange jumped 15% after the deal was announced.

For Milei, the swap provides short-term breathing room amid a deepening crisis. His radical austerity plan-designed to slash public spendihas not yet produced a recovery, and public discontent is rising. With midterm elections approaching on October 26, the timing of the U.S. aid raises eyebrows. Milei's party recently suffered a stinging defeat in local races, triggering a sell-off in Argentine assets and renewed doubts over the country's economic viability.

While Treasury officials have not detailed any economic conditions tied to the swap, many observers question whether this is a strategic investment or a politically motivated rescue. Argentina still owes $41.8 billion to the IMF, making it the Fund's largest debtor, and past bailouts have failed to produce lasting reforms.

Still, Economy Minister Caputo expressed "deepest gratitude" to Bessent for the support, praising his "steadfast commitment."

Whether this currency lifeline helps stabilize Argentina or merely postpones deeper trouble remains to be seen. In the meantime, U.S. agricultural stakeholders and policymakers are demanding answers about the domestic trade-offs of supporting an embattled foreign economy.