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U.S. Treasury on 'Warning Track' for Debt Ceiling, Bessent Assures No Default by August-October

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Updated May 6, 2025, 04:57 PM

U.S. Treasury Secretary Scott Bessent has firmly stated that the U.S. government will never default on its debt, emphasizing that the debt ceiling will be raised. This assurance comes as the Treasury Department finds itself on the 'warning track' toward exhausting its capacity to stay within the federal debt limit.

Bessent made these comments during a hearing at the House Appropriations Committee, where he also noted that the Treasury is still processing tax returns and expects to provide Congress with an estimate of the so-called X-date, when the Treasury will be unable to pay all government bills on time, in the near future. He stressed that no 'gimmicks' will be used to circumvent the debt ceiling.

The Treasury has been employing special accounting maneuvers to avoid breaching the debt limit while continuing to meet federal obligations. Analysts on Wall Street have projected that the Treasury might need Congress to act between August and October to increase or suspend the debt ceiling.

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Sources

politico.com(2)cnnbrasil.com.br finance.yahoo.com bloomberg.com

CNN Economia

@CNNEconomia

Bessent says the Treasury is on “alert” about the US debt ceiling https://t.co/8KnZlO8nsc

Benzinga

@Benzinga

U.S. Secretary of the Treasury Scott Bessent said today: "The United States Government will never default. We will raise the debt ceiling." https://t.co/e0CucFe5sY