Treasury Secretary Scott Bessent stated on CBS News' "Face the Nation" that the United States government will not default on its debt, emphasizing that such a scenario is unlikely despite the approaching debt ceiling deadline. As Congress considers a tax package proposing a $4 trillion increase in the debt limit, which would extend the ceiling for approximately two years, concerns about potential default have arisen.
During the interview, Bessent was asked about the likelihood of a default and the government's financial flexibility in light of the mid-July deadline for raising the debt limit. He reiterated that the United States will never default, describing the situation as being on the "warning track" but assured that a crisis would be avoided.
Budget analysts have indicated that the "X date," which marks when the Treasury will deplete its extraordinary measures to meet debt obligations, is projected to occur in late summer 2025. The Congressional Budget Office (CBO) has estimated that these measures may be exhausted by August or September, depending on fluctuations in tax revenue and government spending. The Bipartisan Policy Center also provided a range for the X date, suggesting it could be as early as mid-July or extend to early October.
Bessent downplayed a recent downgrade of the U.S. credit rating by Moody's, describing it as a "lagging indicator" and emphasizing the importance of addressing the debt ceiling to maintain fiscal stability. The downgrade reflects escalating government debt and interest payment ratios, which have raised concerns among credit rating agencies about the nation's fiscal health.