Beisent stated that the United States is in a "warning phase" regarding the debt ceiling, and the U.S. government will never default

On Tuesday, U.S. Treasury Secretary Janet Yellen reiterated that the U.S. Treasury is on a "warning track," meaning it is close to exhausting its ability to stay within the federal debt ceiling, but she did not provide a specific timeline. She also reaffirmed that the U.S. government will never default and promised that the Treasury will not use "tricks" to circumvent the debt ceiling. Yellen stated during a hearing with the House Appropriations Committee: When we believe we are approaching the so-called "X date," we will share that with Congress. The U.S. Treasury is still calculating the tax revenue from the latest tax season. The "X date" refers to the day when the U.S. Treasury can no longer meet all government bills on time. Since January of this year, the U.S. debt ceiling has been back in effect, and the Treasury has been using special accounting maneuvers to avoid breaching the limit while maintaining payments on federal obligations. Wall Street analysts expect that the Treasury can last until between August and October, at which point Congress will need to raise or suspend the debt ceiling. The U.S. Treasury stated last week that it expects to provide an updated timeline for how long its cash and extraordinary measures can last in early May. Congressional Budget Office Director Phillip Swagel said on Monday that current federal revenues are in line with previous forecasts, indicating that the Treasury may be able to last until late summer—August or September. Republicans in Congress are planning to raise the debt ceiling by $5 trillion this summer, bringing it to about $41 trillion, as part of a proposal that includes tax cuts and spending reductions. Raising the debt ceiling does not mean approving new spending but is intended to pay for government commitments, including payments to bondholders, veterans, and Social Security beneficiaries. Yellen also reiterated that the current federal budget is on an unsustainable path. This statement aligns with the general market view. Yellen recently stated: It is difficult to determine when financial markets will "rebel." The debt data is indeed frightening. A crisis would manifest as a sudden halt in the economy, as credit would disappear, and I am committed to preventing that from happening. On the same day, when asked about Central Bank Digital Currency (CBDC), Yellen reiterated the Trump administration's opposition. "We believe that digital assets should belong to the private sector. Personally, I think launching a central bank digital currency is a sign of weakness, not strength."