By Tatiana Bautzer
DETROIT (Reuters) -Argentina may not ultimately need a bank loan, JPMorgan CEO Jamie Dimon said on Wednesday, adding Argentine President Javier Milei is doing a good job overhauling the
country's troubled economy.
Speaking to Reuters in Detroit, Dimon also said he believes the U.S. Federal Reserve will continue to be independent, although he stressed U.S. President Donald Trump will continue to speak his mind and that no president ever favors high interest rates.
U.S. Treasury Secretary Scott Bessent said last month the department was working with banks and investment funds to create a $20 billion facility to invest in Argentina's sovereign debt. But a group of U.S. banks, including JPMorgan, Bank of America, and Goldman Sachs, have been hesitant to lend that much to Argentina without guarantees or collateral.
Dimon, who runs the largest U.S. bank, said a bank loan may be unnecessary, but lenders are willing to help.
Milei's party cruised to victory in midterm legislative elections last month as voters handed him a mandate to keep pushing through his radical overhaul of the economy despite widespread discontent with his deep austerity measures.
The Argentine president is "a force of nature" who is working to undo decades of bad policies that reduced Argentina's relative importance in the world economy, Dimon added.
His policies have reduced inflation and increased growth, and Dimon said the country could enjoy $100 billion in foreign investment if he continues the reforms, without elaborating on the origin of that figure.
FED INDEPENDENCE
Trump's attacks on Federal Reserve policymakers have emerged as the biggest threat in decades to the central bank's independence, which is widely seen as key to keeping down inflation and maintaining stability in the global financial system.
Trump's unprecedented threat to fire Fed Governor Lisa Cook over alleged mortgage-related improprieties and his relentless pressure on Fed Chair Jerome Powellto cut interest rates are testing the boundaries of presidential power over the U.S. central bank.
But Dimon said he believes the central bank would remain independent.
(Reporting by Tatiana Bautzer in Detroit and Nivedita Balu in Toronto; Additional reporting by Manya SainiEditing by Rod Nickel and Michelle Price)
