“This will never happen”: what the head of the US treasury says about the huge debt of the country

The American Treasury Secretary Scott Bessent insisted that the United States will never be incapable of payment of debt, thus trying to reassure Wall Street concerns about the state of the country's public finances, reports Financial Times.

“The United States will never be incapable of payment, this will never happen,” Bessent said in the CBS's nation show, broadcast on Sunday. “We are in the warning area, but we will never hit the wall,” he assured.

Investors' fears about the size of US federal debt increased as President Donald Trump has asked the Congress to adopt his budget project, which is estimated to increase the federal deficit.

Bessent rejected the fears expressed on Friday by director JPMorgan Chase, Jamie Dimon, who warned that the market for American bonds could be “collapsed” under the weight of the country's increasing debts.

“I have known Jamie for a long time and, throughout his career, he has made such predictions. Fortunately, none has come true,” said the secretary of the Washington Treasury.

New worries about US debt level

The Budget Office of the Congress, the fiscal supervision body of the US government, warned in March that, even without the new budget law, the US debt as a percentage of GDP will exceed the level reached in the 1940s, when it wore a two-front conflict against Japan and Germany, during the Second World War.

Last month, Moody's rating agency withdrew to the United States Maximum AAA qualifier for the sovereign debt.

The Committee for a responsible federal budget warned that, in the current form, Trump's bill would add about $ 3,000 billion to national debt in the next decade. This is currently nearly 37,000 billion ($ 37 trillion).

Investors are also worried that the problem of increasing the debt ceiling, which would increase by $ 4,000 billion according to the proposed legislation, is now conditioned by the Tensions in Congress and the internal struggles in the Republican Party.

The draft law passed the Chamber of Representatives last month and is to be debated in the Senate. But some members of the upper chamber have expressed concern both in relation to the high levels of expenses and the extent of the debt ceiling.

Including Elon Musk criticized the Trump administration budget project

Elon Musk, who this week resigned from the position he held in the Trump administration, said in an interview for CBS, broadcast on Sunday, that he is “disappointed” by the “massive expense project”, which he said undermines the efforts to reduce the costs by his so-called Department for the Government Efficiency).

The Trump administration claimed that the draft law will not increase the deficit and that the projections do not take into account the additional economic growth.

“I tell you that this will reduce the deficit,” said Mike Johnson, the president of the Chamber of Representatives, in the Meet The Press of NBC, broadcast on Sunday. “We will stimulate a huge economic growth here,” he promised.

Bessent also said that many of the projections did not take into account the “substantial” income generated by the new extended customs taxes imposed by Trump, which he says could bring extra trillion to the government budget.

“This year's deficit will be younger than last year and, over two years, it will be even younger,” said Bessent.

Fight in American justice on customs taxes imposed by Trump administration

Trump's plans related to customs duties encountered an obstacle last week, after a court decided that the president did not have the legal authority needed to impose most of these taxes. The White House has obtained a temporary suspension of the court's decision to a court of appeal.

The Secretary for Trade, Howard Lutnick, said that even if the president prevented from imposing customs duties based on certain legal powers, he will find other ways to implement them.

“Be sure, customs duties will not disappear,” Lutnick told Fox News on Sunday.

“It has so many other legal authorities that, even in the strange and unusual circumstance in which one would withdraw, we will resort to another, and another, and another,” he gave assurances.