Overview

• Treasury Secretary Scott Bessent has warned that the U.S. could default on its financial obligations as early as August if the debt ceiling is not raised or suspended.
• Bessent has urged Congress to act by mid-July, emphasizing that delays could destabilize financial markets, harm the economy, and erode business and consumer confidence.
• The U.S. currently carries a $36 trillion debt load, with Treasury's extraordinary measures expected to be exhausted by August.
• Failure to address the debt ceiling could undermine the U.S. financial system, weaken national security, and diminish the country's global leadership, according to Bessent.
• The Congressional Budget Office previously projected potential insolvency in August or September, highlighting the urgency for bipartisan agreement in Congress.