Latest news with #USdefault
Bloomberg
4 days ago
- Business
- Bloomberg
Bessent Says US Will Never Default as Congress Faces Endgame
Treasury Secretary Scott Bessent said the US 'is never going to default' as the deadline for increasing the federal debt ceiling gets closer. 'That is never going to happen,' Bessent said Sunday in an interview with CBS's Face the Nation. 'We are on the warning track and we will never hit the wall.'
Russia Today
11-05-2025
- Business
- Russia Today
US could face default by August
The US could default on its obligations by the end of summer, Treasury Secretary Scott Bessent has warned. In a letter to Congress on Friday, he urged lawmakers to act by either raising or suspending the debt ceiling – a cap on how much the government can borrow – to avoid running out of money to cover federal expenses. The country hit its current statutory debt limit of $36.1 trillion in January. Once the ceiling is reached, the government can no longer borrow to meet its obligations in full and on time. By now, total US debt has risen to $36.2 trillion, according to official data. However, the Treasury has relied on 'extraordinary measures' – primarily accounting tactics like pausing payments into civil service retirement funds – to continue to meet its obligations and delay default. Republicans have reportedly been working on a legislative package that would raise the limit by up to $5 trillion, largely by extending and expanding President Donald Trump's 2017 tax cuts. However, recent reports suggest that negotiations are progressing slowly and could take months. Bessent said there is a 'reasonable probability' that the Treasury's emergency measures will run out by August, when Congress is scheduled to recess. He called on lawmakers to finalize the package by mid-July, warning that missing the deadline could leave the government without options to stave off default. 'I respectfully urge Congress to increase or suspend the debt limit by mid-July, before its scheduled break, to protect the full faith and credit of the United States,' Bessent wrote in a letter addressed to House Speaker Mike Johnson. 'A failure to suspend or increase the debt limit would wreak havoc on our financial system and diminish America's security and global leadership position,' he added. Bessent went on to warn that 'waiting until the last minute to suspend or increase the debt limit' could have 'serious adverse consequences' for financial markets, businesses, and the federal government, harm business and consumer confidence, and raise borrowing costs for US taxpayers. The Congressional Budget Office has projected that the emergency measures would be exhausted in August or September. The debt ceiling was raised three times under former President Joe Biden. Trump has argued that the cap should be abolished entirely, calling it pointless if it's routinely lifted. Bessent has pledged that a default will be avoided. Speaking at a House Appropriations Committee hearing last week, he said, 'The US government will never default,' assuring lawmakers that the Treasury 'will make sure that the debt ceiling is raised.'
CNN
10-05-2025
- Business
- CNN
Congress needs to address debt ceiling before its August recess to prevent default, Treasury secretary says
Source: CNN Lawmakers have until August to address the debt ceiling or the US could default on its obligations for the first time ever, Treasury Secretary Scott Bessent wrote to congressional leaders Friday, urging them to act even sooner, 'to protect the full faith and credit of the United States.' The projection gives Republican lawmakers – who control Capitol Hill – a firmer deadline of when they have to pass their massive budget reconciliation bill, which aims to increase the debt ceiling along with extending the 2017 tax cuts and slashing federal spending. In his letter, Bessent said there is a 'reasonable probability' that the cash and extraordinary measures that are allowing Treasury to continue paying the nation's bills in full and on time will be exhausted in August, pointing out that is when Congress is scheduled to be in recess. But he noted that the projection is subject to 'significant uncertainty.' 'Therefore, I respectfully urge Congress to increase or suspend the debt limit by mid-July, before its scheduled break, to protect the full faith and credit of the United States,' he wrote. Treasury has been using cash and extraordinary measures to pay the nation's bills in full and on time since January 21, when the US hit its roughly $36 trillion debt ceiling. Once the nation reaches that cap, which it has done repeatedly, it can no longer borrow to cover its obligations in full and on time. A default would likely cause global economic upheaval. House GOP leaders are closely monitoring projections for the so-called X-date, when the government could default, House Speaker Mike Johnson said at an Axios event in late April. 'That's a big pressure point, and we don't know exactly when that X date will fall,' Johnson said, noting at the time that he was working under the assumption it could be as early as the beginning of June. 'We can't be caught flat-footed on this.' However, the caucus remains divided over how to address all three of its goals in the 'big, beautiful bill,' leaving leaders with the tricky task of constructing a package that can get enough GOP votes to pass both chambers. In March, Bessent told lawmakers that he would continue using extraordinary measures – which are largely behind-the-scenes accounting maneuvers – through June 27. The Congressional Budget Office in March projected that the 'X-date' would be reached in August or September. Though they control Congress, Republicans are divided over how to handle the debt ceiling. The House has included a $4 trillion increase to the cap in its budget resolution, while the Senate version raises the limit by $5 trillion. President Donald Trump has pushed GOP lawmakers to address the limit as soon as possible. See Full Web Article
Yahoo
09-05-2025
- Business
- Yahoo
Congress needs to address debt ceiling before its August recess to prevent default, Treasury secretary says
Lawmakers have until August to address the debt ceiling or the US could default on its obligations for the first time ever, Treasury Secretary Scott Bessent wrote to congressional leaders Friday, urging them to act even sooner, 'to protect the full faith and credit of the United States.' The projection gives Republican lawmakers – who control Capitol Hill – a firmer deadline of when they have to pass their massive budget reconciliation bill, which aims to increase the debt ceiling along with extending the 2017 tax cuts and slashing federal spending. In his letter, Bessent said there is a 'reasonable probability' that the cash and extraordinary measures that are allowing Treasury to continue paying the nation's bills in full and on time will be exhausted in August, pointing out that is when Congress is scheduled to be in recess. But he noted that the projection is subject to 'significant uncertainty.' 'Therefore, I respectfully urge Congress to increase or suspend the debt limit by mid-July, before its scheduled break, to protect the full faith and credit of the United States,' he wrote. Treasury has been using cash and extraordinary measures to pay the nation's bills in full and on time since January 21, when the US hit its roughly $36 trillion debt ceiling. Once the nation reaches that cap, which it has done repeatedly, it can no longer borrow to cover its obligations in full and on time. A default would likely cause global economic upheaval. House GOP leaders are closely monitoring projections for the so-called X-date, when the government could default, House Speaker Mike Johnson said at an Axios event in late April. 'That's a big pressure point, and we don't know exactly when that X date will fall,' Johnson said, noting at the time that he was working under the assumption it could be as early as the beginning of June. 'We can't be caught flat-footed on this.' However, the caucus remains divided over how to address all three of its goals in the 'big, beautiful bill,' leaving leaders with the tricky task of constructing a package that can get enough GOP votes to pass both chambers. In March, Bessent told lawmakers that he would continue using extraordinary measures – which are largely behind-the-scenes accounting maneuvers – through June 27. The Congressional Budget Office in March projected that the 'X-date' would be reached in August or September. Though they control Congress, Republicans are divided over how to handle the debt ceiling. The House has included a $4 trillion increase to the cap in its budget resolution, while the Senate version raises the limit by $5 trillion. President Donald Trump has pushed GOP lawmakers to address the limit as soon as possible.
CNN
09-05-2025
- Business
- CNN
Congress needs to address debt ceiling before its August recess to prevent default, Treasury secretary says
Lawmakers have until August to address the debt ceiling or the US could default on its obligations for the first time ever, Treasury Secretary Scott Bessent wrote to congressional leaders Friday, urging them to act even sooner, 'to protect the full faith and credit of the United States.' The projection gives Republican lawmakers – who control Capitol Hill – a firmer deadline of when they have to pass their massive budget reconciliation bill, which aims to increase the debt ceiling along with extending the 2017 tax cuts and slashing federal spending. In his letter, Bessent said there is a 'reasonable probability' that the cash and extraordinary measures that are allowing Treasury to continue paying the nation's bills in full and on time will be exhausted in August, pointing out that is when Congress is scheduled to be in recess. But he noted that the projection is subject to 'significant uncertainty.' 'Therefore, I respectfully urge Congress to increase or suspend the debt limit by mid-July, before its scheduled break, to protect the full faith and credit of the United States,' he wrote. Treasury has been using cash and extraordinary measures to pay the nation's bills in full and on time since January 21, when the US hit its roughly $36 trillion debt ceiling. Once the nation reaches that cap, which it has done repeatedly, it can no longer borrow to cover its obligations in full and on time. A default would likely cause global economic upheaval. House GOP leaders are closely monitoring projections for the so-called X-date, when the government could default, House Speaker Mike Johnson said at an Axios event in late April. 'That's a big pressure point, and we don't know exactly when that X date will fall,' Johnson said, noting at the time that he was working under the assumption it could be as early as the beginning of June. 'We can't be caught flat-footed on this.' However, the caucus remains divided over how to address all three of its goals in the 'big, beautiful bill,' leaving leaders with the tricky task of constructing a package that can get enough GOP votes to pass both chambers. In March, Bessent told lawmakers that he would continue using extraordinary measures – which are largely behind-the-scenes accounting maneuvers – through June 27. The Congressional Budget Office in March projected that the 'X-date' would be reached in August or September. Though they control Congress, Republicans are divided over how to handle the debt ceiling. The House has included a $4 trillion increase to the cap in its budget resolution, while the Senate version raises the limit by $5 trillion. President Donald Trump has pushed GOP lawmakers to address the limit as soon as possible.
