Treasury Sec. Bessent Says the US “Will Never Default” as July Debt Ceiling Deadline Nears
Washington, D.C. — June 1, 2025 — Treasury Secretary Elizabeth Bessent offered strong reassurances Monday amid growing concerns over the fast-approaching debt ceiling deadline, stating unequivocally that the United States “will never default on its obligations.”
Speaking at a press conference in the nation’s capital, Bessent sought to calm financial markets and political tensions as Congress faces a July deadline to raise or suspend the federal borrowing limit. Failure to act could lead to the U.S. government being unable to meet its debt payments for the first time in history.
“The United States has always paid its bills, and we will continue to do so. Let me be clear: we will never default,” Bessent said. “That is not just a financial commitment—it is a cornerstone of global economic stability.”
Bessent’s remarks come as partisan negotiations on Capitol Hill remain tense. Lawmakers are deeply divided over budgetary priorities, with Republicans pushing for steep spending cuts and Democrats calling for a “clean” debt ceiling increase with no policy strings attached.
The Treasury Department has already begun implementing so-called “extraordinary measures” to extend the government’s borrowing capacity temporarily. However, those measures are expected to be exhausted by mid-to-late July, according to a recent estimate from the Congressional Budget Office (CBO).
Economists warn that a default could trigger chaos in global financial markets, raise interest rates for American consumers, and threaten the U.S. dollar’s status as the world’s reserve currency.
Despite the looming deadline, Secretary Bessent expressed confidence in a resolution.
“Congress understands the gravity of the situation. We’ve been here before, and while we may take it to the brink, the United States has always stepped back from the edge,” she said.
Markets appeared to respond positively to Bessent’s comments, with the Dow Jones Industrial Average rising slightly in afternoon trading. Still, analysts caution that prolonged uncertainty could rattle investor confidence.
President Biden is expected to meet with Congressional leaders later this week in a renewed push to reach a bipartisan agreement. Until then, all eyes remain on Washington as the clock ticks toward a potentially historic fiscal deadline.