Treasury Secretary Scott Bessent Warns US Government On ‘Scary’and Unsustainable Debt Trajectory
US Secretary of Treasury Scott Bescent said the US had to reverse this “scary” fiscal path that was before it was too late.
In a look before a House committee Tuesday morning dedicated to the 2026 White House budget request, Congressman Chuck Edwards asked Bessesent what would look like if US government debt levels became “unstable.”
Says bessent,
“It seems like a sudden stop in the economy because the credit is lost because the markets lose confidence. I focus on what is not happening, and again, a tipping point in maintenance is very difficult to determine, but what is not difficult to determine is a trajectory, and the trajectory is unstable.
When and if the markets rebel against it is very difficult to know. I think like I was talking about the warning track for the X-date, I think it's very important not to go to the warning track, and we'll get to the other side of it and start reducing the debt.
And the debt numbers are really scary, but both of us agree that Secretary Yellen is the Utang-to-GDP that is as important as we are trying to both control the full debt level, pay it off, but also grow GDP. “
By the end of 2024, the US Ut-to-GDP ratio was 124%.
At the hearing, Bessent, a former partner at the Soros Fund Management, also confirmed that he would not favor the Federal Reserve introducing a Central Bank Digital Currency (CBDC).
“We believe that digital ownership belongs to the private sector, and my personal view is that having a CBDC is a sign of weakness, not strength. In fact, if there are different reserve managers, or a foreign central bank is holding us dollar, then there are different US ownership.
https://www.youtube.com/watch?v=zbessuv7MJU
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