Quick overview

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Treasury Secretary Scott Bessent stated that the United States “was never going to default,” as the deadline for raising the federal debt ceiling approaches. Bessent stated, “That is never going to happen.”We will never hit the wall, but on the warning track.

President Donald Trump’s tax and spending bill included raising the debt limit attached by Republican congressional leaders, which could make avoiding a default dependent on intricate negotiations over the legislation.

This week marks the return of the US Senate to consider the bill. The “X date” is when the Treasury runs out of cash and special accounting procedures that enable it to remain within the debt ceiling and still fulfill its obligations to the federal government on time.“We use the ‘X date’ to advance the bill, so we don’t give it out.”

Markets predict that the deadline will occur sometime between late August and mid-October.

Bessent resisted a warning from JPMorgan Chase and Co.  Jamie Dimon claimed a crack in the bond market “was going to happen.”

He remarked, “I’ve known Jamie for a long time, and he’s made predictions like this throughout his career.”. Thankfully, none of them have materialized.

He is an excellent banker because of this. He makes an effort to glance around the corner. “We intend to reduce the deficit,” Bessent stated. “The objective is to bring it down over the next four years because this has been a lengthy process’

Bessent also resisted a warning from JPMorgan Chase and Co. Jamie Dimon, the CEO, stated that a crack in the bond market “is going to happen.”. “I’ve known Jamie for a long time, and he’s made predictions like this throughout his career,” he remarked. Luckily, none of them have materialized. He is an excellent banker.

Bessent said he is certain that the most recent dispute “will be ironed out” in a call between Trump and Chinese President Xi Jinping “very soon,” after Trump’s accusation last week that Beijing authorities were breaking a US-Chinese tariff truce signed in May. According to Kevin Hassett, director of the White House National Economic Council, the call is anticipated this week.