US Treasury Secretary: US is on'early warning track 'of debt ceiling

On Tuesday, U.S. Treasury Secretary Vincent Bescent reiterated his warning that the Treasury is on a "warning track" of exhausting its ability not to breach the federal debt limit, but he did not provide a specific timeline. In response to questions from the House Appropriations Committee, Bescent said that when we think we are approaching the so-called "X-Day," a date when the Treasury will not be able to pay all government bills on time, he said. The Treasury is still counting tax revenues for the latest tax filing season, he said. The debt ceiling resurfaced in early January, and the Treasury has been using special accounting maneuvers to avoid breaching it while maintaining payments on federal debt. Wall Street analysts estimate that the Treasury won't need Congress to raise or put the debt ceiling on hold until August to October. "We are on an early warning trajectory," Mr. Bescent said, reiterating that the US government would never default and promising that the Treasury would not use "gimmicks" to circumvent the debt ceiling.