Treasury Secretary Scott Bessent sounded the alarm on Fox News Tuesday, cautioning that congressional inaction on economic reform could precipitate what he termed the “ultimate calamity.”
With a mid-July deadline approaching to raise the nation’s $37 trillion debt ceiling, Bessent underscored the urgent need for a balanced approach that combines disciplined spending cuts with policies designed to foster long-term economic growth.
Speaking with Fox News host Bret Baier, Bessent emphasized that the nation’s fiscal challenges cannot be resolved overnight.
READ: Department Of Interior Secretary Scraps Single-Use Plastic Ban, Cites “Iced-Coffee And Flexibility”
“There are two parts here,” Bessent stated. “And when I look in the mirror in the morning, I see a deficit hawk. So I’m very sympathetic to some of the senators who want to do more now. But, again, we did not get here in one year. We can’t solve this in a year. We are going to land this plane well for the economy, for the American people.”
He cautioned against overly aggressive spending cuts, arguing that such measures could stifle economic momentum. Instead, he advocated for a strategy that blends fiscal restraint with growth-oriented policies.
“That is going to be done through a combination of restraining and cutting spending and growing the economy, because too big a cut and the economy would slow down. So nobody wants that,” he explained.
The gravest risk, according to Bessent, would be legislative gridlock that could trigger automatic tax hikes. He warned that such a scenario would deliver “the biggest tax increase in U.S. history, which would kill growth and balloon the deficit even beyond the Biden years.”
READ: Treasury Secretary Scott Bessent: Tariffs Will Likely Lead To Price Increases
The Treasury Secretary’s remarks come as Congress faces intense pressure to address the debt limit. Earlier in May, Bessent urged Republicans to swiftly pass the president’s tax and spending bill, which is tied to the debt ceiling increase.
While both chambers are aligning the debt limit hike with the comprehensive package, points of contention remain. Senate Republicans are reportedly pushing for revisions to House provisions concerning state and local tax (SALT) caps, green energy tax breaks, and expiring tax cuts.
The current debt ceiling, reinstated at $36.1 trillion on January 2, 2025, has already led the Treasury to employ “extraordinary measures” to continue financing government operations.
The Congressional Budget Office (CBO) estimates these measures will likely be exhausted in August or September 2025 if the debt limit remains unchanged, underscoring the critical nature of the upcoming July deadline.
Failure to act could lead to delayed payments for government activities or, more severely, a default on U.S. debt obligations, with potentially devastating consequences for financial markets and the broader economy.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
