In recent days, the Minister of Economy, Luis Caputo, held a secret meeting with one of his most trusted advisors: Domingo Cavallo. The meeting was about ten days ago and in it, as TN learned, the former Menem official offered his view on the moment the economy is going through.
Since the campaign, Cavallo has been one of the “consultants” to whom Javier Milei and his entourage most often turn. Such is his influence in the Cabinet that Osvaldo Giordano's continuity at the head of Anses seems to be explained only because it was Cavallo – in addition to Martín Llaryora – who recommended him for the position. It is worth remembering that many pointed out Giordano as one of the officials who would be fired from the Government as a retaliation to the governor of Córdoba for the failure of the Omnibus Law.
Read also: Milei ruled out the option of calling a plebiscite to pressure for the Omnibus Law
In the secret meeting, some points of the harsh fiscal plan that the Government has been implementing were reviewed and Cavallo showed a tone of concern about what may happen in the coming months. Beyond betting heavily on the current administration and highlighting the figure of the President as an exponent of the liberal school, the former head of the Treasury Palace during the 90s raised his objections about the fight against inflation and its impact on the dollar price.
Apparently, Cavallo's inflation forecast is worse than that of the Government, and that is why he believes that the 2% monthly devaluation guideline is insufficient: according to his vision, the dollar would quickly fall behind, which would force it to devalue again. in March or April, generating new problems for the economy.
The former Minister of Economy of Menemism, a most trusted advisor to Milei.
Caputo, for his part, tried to calm him down. He assured that there will not be another exchange rate jump in the short term since inflation is falling stronger than expected. Furthermore, he assures that the fact of having reached fiscal balance in January is a guarantee to not have to continue issuing.
Read also: Francos denied the fight with the governors, but held them responsible for the fall of the Omnibus Law
Next Wednesday will be a key day: the official inflation index for January will be announced. While Cavallo believes it will be around 25%, Caputo spoke of an optimistic 20% that would show that it is not necessary to devalue so soon.
Read also: Javier Milei could displace officials who respond to the provinces that voted against the Omnibus Law
This week, after the Omnibus Law fell in Deputies, Caputo came out to the crossroads of those who voted negatively and assured: “Whether or not the law is voted on is not going to change the economic course. More than what is collected will not be spent and the Central Bank will not finance the Treasury. We all know that there are a handful of legislators who want everything to stay the same, even though people voted for a change. The country continues and everything is going to turn out well because for the first time in decades, we are doing the right thing.”