Bessent backs US financial power as foreign policy tool

Scott Bessent, the US Treasury Secretary, recently advocated for the use of financial power as a tool in foreign policy to advance American interests, citing Argentina as a prime example. He emphasized that the US has the ability to shape foreign affairs through its "balance sheet" and highlighted Argentina's government, led by President Javier Milei, as having sound policies.

In 2022, the US provided Argentina with a multibillion-dollar financial package to stabilize its currency and support Milei's administration ahead of midterm elections.

Bessent's remarks at the SMU Cox School of Business echoed the Trump administration's willingness to utilize US financial resources to influence political and economic situations in foreign countries. This approach has been evident in other Latin American nations as well, with the US seeking to increase its presence and influence in the region.

Trump administration's actions in Venezuela, such as the seizure of ousted leader Nicolas Maduro and military strikes on boats, have been met with criticism from rights advocates who argue these actions are imperial and result in extrajudicial killings, while Trump maintains they aim to protect US interests and combat drug trafficking and illegal immigration.

Additionally, Bessent discussed the US's joint yen-buying intervention with Japan on July 31, which aimed to prevent a selloff in the yen and Japanese government bonds from causing global market instability. The Trump administration's use of tariffs as a foreign policy tool further underscores their commitment to leveraging financial power to achieve strategic objectives.