Latest news with #debtceiling
Bloomberg
2 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.'
Fox News
2 days ago
- Business
- Fox News
Rand Paul says he would support 'big, beautiful bill' if debt ceiling hike removed
Sen. Rand Paul, R-Ky., said on Sunday that he would support President Donald Trump's "big, beautiful bill" if the debt ceiling hike was removed. Paul told CBS' "Face the Nation" host Margaret Brennan that he and three other Republican senators will hold out against the bill unless it is modified. "I think there are four of us at this point, and I would be very surprised if the bill at least is not modified in a good direction," Paul said. "I want the tax cuts to be permanent. But at the same time, I don't wanna raise the debt ceiling five trillion," he continued, adding, "The GOP will own the debt once they vote for this." Trump on Saturday warned Paul would be "playing right into the hands of the Democrats" if he votes against the bill. "If Senator Rand Paul votes against our Great, Big, Beautiful Bill, he is voting for, along with the Radical Left Democrats, a 68% Tax Increase and, perhaps even more importantly, a first time ever default on U.S. Debt," Trump wrote on Truth Social Saturday afternoon. "Rand will be playing right into the hands of the Democrats, and the GREAT people of Kentucky will never forgive him! The GROWTH we are experiencing, plus some cost cutting later on, will solve ALL problems. America will be greater than ever before!" Next week, Senate Republicans will get their turn to parse through the colossal package and are eying changes that could be a hard sell for House Speaker Mike Johnson, R-La., who can only afford to lose three votes. Congressional Republicans are in a dead sprint to get the megabill — filled with Trump's policy desires on taxes, immigration, energy, defense and the national debt — onto the president's desk by early July.
Telegraph
3 days ago
- Business
- Telegraph
US will never default on its debt, claims Trump's Treasury Secretary
The US will never default on its debts, Donald Trump's Treasury Secretary has claimed, as he sought to downplay growing concerns over the state of the country's public finances. Scott Bessent told CBS news on Sunday that the US was 'on the warning track' but insisted it would not run out of cash despite approaching the so-called debt ceiling – the legal limit that the US government is permitted to borrow. He said: 'I will say the United States of America is never going to default. That is never going to happen. We are on the warning track and we will never hit the wall.' Economists have warned that Donald Trump's 'big, beautiful' spending bill will add trillions to the US's $37 trillion (£27.4 trillion) federal deficit over the next decade. The bill, which was approved by the US's House of Representatives last month, proposes raising the US debt ceiling by $4 trillion. It promises increased spending on the US military and a clampdown on illegal immigration alongside cuts to food aid, clean energy tax credits and Medicare, America's healthcare programme for poorer households. The US has already been downgraded by three major credit rating agencies in part owing to concerns over Mr Trump's policies and slowing economic growth across the Atlantic. In early May, Mr Bessent said there was a 'reasonable probability' that the US could run out of money by August without lifting the debt ceiling. 'We're going to bring the deficit down slowly' Mr Bessent's comments come after Jamie Dimon, the chief executive of JPMorgan, warned last Friday that Donald Trump's financial plans could 'crack' the American bond market. Investors have become increasingly worried over the impact of Mr Trump's borrowing plans on US Treasuries. Mr Dimon said: 'I just don't know if it's going to be a crisis in six months or six years, and I'm hoping that we change both the trajectory of the debt and the ability of market makers to make markets.' Mr Bessent hit back at Mr Dimon, saying: 'I've known Jamie for a long time, and for his entire career he's made predictions like this. Fortunately none of them have come true. That's why he's a great banker. He tries to look around the corner. 'We are going to bring the deficit down slowly. This has been a long process, so the goal is to bring it down over the next four years.' He argued that the US was taking in a 'substantial tariff income' that could net the US government as much as $2 trillion, and pointed to plans for a clampdown on prescription drug prices. He said: '[The] president has a prescription drug plan with the pharmaceutical companies that could substantially push down costs for prescription drugs, and that could be another trillion.' Beijing had violated a truce on tariffs agreed in May.
Yahoo
3 days ago
- Business
- Yahoo
US will never default on its debt, claims Trump's Treasury Secretary
The US will never default on its debts, Donald Trump's Treasury Secretary has claimed, as he sought to downplay growing concerns over the state of the country's public finances. Scott Bessent told CBS news on Sunday that the US was 'on the warning track' but insisted it would not run out of cash despite approaching the so-called debt ceiling – the legal limit that the US government is permitted to borrow. He said: 'I will say the United States of America is never going to default. That is never going to happen. We are on the warning track and we will never hit the wall.' Economists have warned that Donald Trump's 'big, beautiful' spending bill will add trillions to the US's $37 trillion (£27.4 trillion) federal deficit over the next decade. The bill, which was approved by the US's House of Representatives last month, proposes raising the US debt ceiling to $4 trillion. It promises increased spending on the US military and a clampdown on illegal immigration alongside cuts to food aid, clean energy tax credits and Medicare, America's healthcare programme for poorer households. The US has already been downgraded by three major credit rating agencies in part owing to concerns over Mr Trump's policies and slowing economic growth across the Atlantic. In early May, Mr Bessent said there was a 'reasonable probability' that the US could run out of money by August without lifting the debt ceiling. Mr Bessent's comments come after Jamie Dimon, the chief executive of JPMorgan, warned last Friday that Donald Trump's financial plans could 'crack' the American bond market. Investors have become increasingly worried over the impact of Mr Trump's borrowing plans on US Treasuries. Mr Dimon said: 'I just don't know if it's going to be a crisis in six months or six years, and I'm hoping that we change both the trajectory of the debt and the ability of market makers to make markets.' Mr Bessent hit back at Mr Dimon, saying: 'I've known Jamie for a long time, and for his entire career he's made predictions like this. Fortunately none of them have come true. That's why he's a great banker. He tries to look around the corner. 'We are going to bring the deficit down slowly. This has been a long process, so the goal is to bring it down over the next four years.' He argued that the US was taking in a 'substantial tariff income' that could net the US government as much as $2 trillion, and pointed to plans for a clampdown on prescription drug prices. He said: '[The] president has a prescription drug plan with the pharmaceutical companies that could substantially push down costs for prescription drugs, and that could be another trillion.' Mr Bessent also said he was confident that Donald Trump and the Chinese president, Xi Jinping, would 'iron out' their difficulties in a call soon – following accusations from Mr Trump last week that Beijing had violated a truce on tariffs agreed in May. He said: '[Mr Trump] is going to have a wonderful conversation about the trade negotiations this week with President Xi. That's our expectation.'
Bloomberg
3 days ago
- Business
- Bloomberg
Bessent Says US Will Never Default as Congress Faces Deadline
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 in an interview for CBS's Face the Nation scheduled to air Sunday. 'We are on the warning track and we will never hit the wall.'
