US projected to hit debt limit in August: Treasury chief

US Treasury Secretary Scott Bessent has warned that the state could soon scope its indebtedness limit. Photo: Brendan SMIALOWSKI / AFP/File
Source: AFP

There is simply a "reasonable probability" the United States volition deed its borrowing bounds successful August erstwhile Congress is successful recess, Treasury Secretary Scott Bessent said Friday, calling connected lawmakers to act.

"I respectfully impulse Congress to summation oregon suspend the indebtedness bounds by mid-July, earlier its scheduled break, to support the afloat religion and recognition of the United States," helium wrote successful a missive to the talker of the House of Representatives, Mike Johnson.

The United States exceeded a astir $36 trillion congressionally approved borrowing headdress successful January this year, forcing the Treasury Department to instrumentality "extraordinary measures" to avert the hazard of a authorities default.

The Republican-controlled Congress has been successful talks to summation the threshold arsenic portion of a broader suite of tax-and-spend measures based connected President Donald Trump's argumentation priorities.

But the talks person truthful acold failed to construe into authorities that can walk some the House and the Senate, spurring Bessent's letter.

"Prior episodes person shown that waiting until the past minute... tin person superior adverse consequences for fiscal markets, businesses and the federal government," helium said.

"A nonaccomplishment to suspend oregon summation the indebtedness bounds would wreak havoc connected our fiscal strategy and diminish America's information and planetary enactment position," Bessent added.

Source: AFP