Scott Bessent, the U.S. Treasury Secretary, assured that the country will not default on its debt, even as the deadline for raising the federal debt ceiling approaches.

What Happened: Bessent, in an interview with CBS’s Face the Nation on Sunday, dismissed the possibility of a default. “The United States of America is never going to default. That is never going to happen,” he said, reported CBS News.

The debt ceiling, a cap set by Congress on the amount of debt the federal government can legally borrow, is a contentious issue. Republican leaders have linked the debt limit increase to President Donald Trump‘s tax and spending bill, adding complexity to the negotiations over the legislation.

Bessent did not reveal the “X date” — the moment when the Treasury exhausts its cash and special accounting maneuvers that help it remain under the debt ceiling while continuing to meet federal obligations on time. He explained that this information is used to advance the bill.

He also responded to a warning from Jamie Dimon, CEO of JPMorgan Chase & Co. ( JPM ) , regarding a possible disruption in the bond market. Bessent said, “I've known Jamie for a long time, and for his entire career he's made predictions like this. Fortunately none of them have come true.”

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Why It Matters: The assurance from Bessent comes amid warnings from financial experts. Jamie Dimon had recently warned of a potential crisis in the bond market due to unchecked debt and monetary expansion. Similarly, former Treasury Secretary Larry Summers had criticized the lack of fiscal discipline in current Republican proposals, warning of a potential crisis if current debt trends continue.

The statements from Bessent are crucial in maintaining investor confidence amid these criticisms.

Meanwhile, the Treasury Secretary also ruled out apprehensions about inflation. "Actually, the inflation numbers are the best in four years. So why don't we stop trying to say this could happen, and wait and see what does happen,” stated Bessent.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.