U.S. Treasury Secretary Bessent extended measures to avoid exceeding the debt limit

U.S. Treasury Secretary Scott Bessent on Wednesday extended extraordinary cash management measures to avoid exceeding the statutory debt limit. This was reported by UNN with reference to Reuters.

Details

U.S. Treasury Secretary Scott Bessent announced that, according to his decision, the "period of suspension of debt issuance," which was previously scheduled to end on Friday, must be extended. This is stated in a letter to the leaders of the United States Congress.

Context

Bessent estimated that the Treasury would no longer be able to pay all of its obligations without raising or suspending the debt limit sometime in mid-to-late summer of this year.

At the same time, no specific updates regarding these deadlines were mentioned in the official's letter.

But on Tuesday, he told reporters that the so-called "X date" of the debt ceiling could change if courts intervene in President Donald Trump's tariffs. The extension until July 24, approved by Bessent, seems to be partly aimed at maintaining pressure on Congress. Apparently, the head of the U.S. Treasury Department expects Congress to support raising the debt ceiling as part of a large-scale package of tax and spending measures. This could happen before the traditional August holidays.

Recall

U.S. Treasury Secretary Scott Bessent and billionaire Elon Musk, then head of the U.S. Government Efficiency Department, fought in the Oval Office.

The White House reported that the United States and China have reached an agreement on rare earth elements, which must be approved by Xi Jinping and Donald Trump.

Earlier, UNN reported that Washington, together with Europe, will strongly strengthen sanctions against Russia if Russian dictator Vladimir Putin does not conduct peace negotiations with Ukraine. Although Bessent admitted that previous U.S. sanctions against Russia have proven ineffective.