Bessent says US on debt-limit ‘warning track,’ but no timing yet

 Treasury Secretary Scott Bessent repeated his warning that his department is on the “warning track” toward exhausting its capacity to stay within the federal debt limit, while refraining from offering a specific timeframe on Tuesday.

“We will share with Congress when we believe we are” approaching the so-called X-date, when Treasury will be unable to pay all of the government’s bills on time, Bessent said in answering questions at the House Appropriations Committee. He said the Treasury is still tallying tax revenue from the latest filing season.

The debt ceiling kicked back in at the start of January, and the Treasury has been using special accounting maneuvers to avoid breaching the limit while maintaining payments on federal obligations. Wall Street analysts have estimated the Treasury has until an August-to-October period before it will need Congress to increase or set aside the debt limit.

“We are on the warning track,” Bessent said. He also reiterated that the US government will never default, and pledged that the Treasury will not use “gimmicks” to get around the debt limit.

https://finance.yahoo.com/news/bessent-says-us-debt-limit-144038350.html