{"id":2446781,"date":"2025-06-13T05:21:02","date_gmt":"2025-06-13T09:21:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/scott-bessent-is-winning-treasurys-debt-ceiling-race-against-time\/"},"modified":"2025-06-13T05:23:30","modified_gmt":"2025-06-13T09:23:30","slug":"scott-bessent-is-winning-treasurys-debt-ceiling-race-against-time","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/scott-bessent-is-winning-treasurys-debt-ceiling-race-against-time\/","title":{"rendered":"Scott Bessent is winning Treasury\u2019s debt ceiling race against time"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fscott-bessent-is-winning-treasurys-debt-ceiling-race-against-time%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2446781&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article discusses the challenges faced by Treasury Secretary Scott Bessent during President donald Trump&#8217;s second term, especially in relation to managing the national debt and navigating Congressional negotiations. Despite significant pressures from Congress, Bessent has successfully maintained fiscal stability, with tax receipts showing a notable increase compared to previous years. <\/p>\n<p>the article also highlights the complexities of the debt ceiling situation,which limits the government&#8217;s ability to borrow. Bessent has managed to push the deadline for a potential government default further into the year, allowing more time for Congress to act on raising the debt ceiling without facing immediate crisis. Though, he faces opposition from fiscal conservatives in Congress who are resistant to increasing the debt limit.<\/p>\n<p>The broader implications of these negotiations extend to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stocks-tumble-globally-on-raft-of-economic-political-worries\/\" title=\"Stocks tumble globally on raft of economic, political worries\">global financial stability<\/a>, with Bessent emphasizing the necessity of raising the debt ceiling to maintain the Treasury&#8217;s status as a safe haven for investors. The article underscores the delicate balance of managing fiscal policy while ensuring that spending reductions are considered in the discussions surrounding the debt ceiling. Ultimately, Bessent is seen as a key figure in ensuring that American financial instruments remain the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/secstate-blinken-on-bidens-climate-agenda-americans-that-relied-on-old-industries-will-be-hit-hard\/\" title=\"SecState Blinken On Biden\u2019s Climate Agenda: Americans \u2018That Relied On Old Industries Will Be Hit Hard\u2019\">gold standard globally<\/a>.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Scott Bessent is winning Treasury&rsquo;s debt ceiling race against time<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2125864\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>Since the start of President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Donald Trump<\/a>&lsquo;s second term, the weight of the world, or at least of global markets, international trade, and geopolitical relations, has fallen on the shoulders of Treasury Secretary <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/scott-bessent\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Scott Bessent<\/a>, whose portfolio spans everything from China tariffs to bond auctions.<\/p>\n<p>But Bessent&rsquo;s toughest negotiating partner is probably not Chinese President Xi Jinping, the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/european-union\/\" target=\"_blank\" rel=\"noopener\" title=\"\">European Union<\/a>, or any other foreign power. Instead, Bessent&rsquo;s most formidable foe is Congress, and the contest is his race to finance the national debt.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/entertainment\/3439235\/terry-moran-joins-unemployed-former-tv-journalists-joining-substack\/\">Terry Moran joins growing wave of unemployed former TV journalists joining Substack<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/3438564\/gm-invest-4-billion-domestic-manufacturing-plants\/\">GM to invest $4 billion in domestic manufacturing plants<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/3437176\/trump-military-parade-what-to-know-road-closures-dc\/\">Trump&rsquo;s military parade: What to know about road closures and traveling around DC<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>In a recent House Ways and Means Committee hearing, Bessent correctly took a victory lap over Trump 2.0&rsquo;s fiscal performance thus far.<\/p>\n<p>&ldquo;Critics of the President&rsquo;s efforts to modernize the IRS warned that the effort would result in a 10% shortfall in receipts,&rdquo; Bessent said. &ldquo;Instead, the opposite happened: April receipts this year were up 9.5% over the previous year, and receipts in May were up 14.7% over the previous year.&rdquo;<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><figcaption class=\"wp-element-caption\">Treasury Secretary Scott Bessent testifies before the House Ways and Means Committee hearing on Capitol Hill on June 11. (Jose Luis Magana\/AP)<\/figcaption><\/figure>\n<\/div>\n<p>Even without Trump&rsquo;s &ldquo;one big, beautiful bill,&rdquo; which is still pending Senate approval, the Treasury Department has done an exceptional job of bringing the ballooning national debt to a halt. From the start of Trump&rsquo;s presidency, total national debt held by the public has only increased by 0.26%, compared to a 2.24% increase in the same window of time in 2024, when former President Joe Biden held the White House. The total fiscal surplus of April 2025 was 22% higher than April 2024, and the deficit of May 2025 was 15% lower than May 2024.<\/p>\n<p>But Bessent is still constrained by the looming deadline and the arguable raison d&rsquo;&ecirc;tre of the <a href=\"https:\/\/amzn.to\/3YuVZYV\" >modern-day treasury secretary<\/a>: the debt ceiling.<\/p>\n<p>While Congress does not constrain the Treasury&rsquo;s ability to spend, it does limit its ability to borrow. Under Article I, Section 8 of the Constitution, Congress must specifically authorize the amount of debt the government can issue. For the first century and a half after the nation&rsquo;s founding, the &ldquo;debt ceiling&rdquo; did not exist because Congress authorized every individual piece of debt the Treasury ever issued. Only with World War II and the dramatic expansion of federal spending did Congress translate its debt-issuing authority into an aggregate debt ceiling.<\/p>\n<p>When Trump entered office, the government had already hit the $36.1 trillion debt ceiling. But the &ldquo;X-date&rdquo; &mdash; the point at which the government would have to default on legally mandated obligations &mdash; wasn&rsquo;t projected to come until June. So<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/debt-ceiling-crisis-tests-bidens-alleged-leadership\/\" title=\"... Crisis Tests Biden\u2019s Alleged Leadership\">-called extraordinary measures<\/a> by the treasury secretary, such as suspending investments in the pensions of federal retirees, were estimated to buy Trump at least five months before Congress would have to raise the debt ceiling.<\/p>\n<p>But under Bessent&rsquo;s extraordinary management, the Congressional Budget Office postponed that projected X-date to &ldquo;between mid-August and the end of September 2025.&rdquo;<\/p>\n<p>Still, the bill comes due. The House version of the reconciliation bill would increase the debt ceiling by $4 trillion, but fiscal hawks such as Sen. Rand Paul (R-KY) have threatened to vote against any version that raises the debt ceiling by $500 billion, or what Congress spends in a matter of months. So, what is the right amount?<\/p>\n<p>Well, it is indeed a financially arbitrary amount. Paul&rsquo;s real gambit isn&rsquo;t that we&rsquo;ll only spend $500 billion in the future, but rather that punting the debt ceiling debate until after the enactment of the &ldquo;one big, beautiful bill&rdquo; could allow him a second shot at securing spending reductions.<\/p>\n<p>In theory, using the threat of refusing to increase the debt ceiling until the government is forced to default on its national debt is akin to refusing to pay your Amex bill. In both cases, the debt crisis is created when Congress or a spendthrift swipes the charge card in question, not when the inevitable bill comes due. As Bessent has reiterated, the debt ceiling <em>must<\/em> be raised simply because failure is not an option. An actual default on our national debt would raise the cost of borrowing to apocalyptic rates that would end the Treasury&rsquo;s status as a global safe haven for good.<\/p>\n<p>But in practice, the threat of refusing to pay that bill <em>does<\/em> constrain future spending. As the economist now known as Jessica Riedl <a href=\"https:\/\/www.nationalreview.com\/2023\/01\/how-fiscal-conservatives-should-approach-the-debt-limit\/\" target=\"_blank\" rel=\"noopener\" title=\"\">explained<\/a>, all eight of the largest deficit-reduction laws of the past 40 years have been attached to debt-limit bills.<\/p>\n<p>&ldquo;Debt-limit &lsquo;showdowns&rsquo; were relatively rare because both sides recognized the need to include fiscal reforms,&rdquo; Riedl said.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/3435968\/biden-autopen-use-dc-widespread\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>BIDEN AUTOPEN USE IN DC WAS MORE WIDESPREAD THAN PREVIOUSLY KNOWN<\/strong><\/a><\/p>\n<p>Now, neither party heeds such wisdom, forcing the rare remaining budget hawks, such as Paul, to milk the moment for all the spending concessions he can extract (or extort, depending on your perspective).<\/p>\n<p>Bessent isn&rsquo;t just buying time for Trump. By delaying the X-date beyond his July 4 deadline for Congress to deliver the reconciliation to Trump&rsquo;s desk, Bessent is implicitly allowing the fiscal hawks a shot at using a later debt limit debate for spending concessions rather than keeping it a live grenade to allow Democrats to dilute the &ldquo;one big, beautiful bill.&rdquo; But in the end, Congress will bend to Bessent, and he, in turn, will keep American bonds and bills the gold standard of global finance.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_2125864\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"2125864\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Scott Bessent is successfully managing Treasury&#8217;s debt ceiling challenge<\/p>\n","protected":false},"author":2693,"featured_media":2446782,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/06\/Biz.Tiana_.061825.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[52160,13123,10680,48678,3778],"class_list":["post-2446781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-debt-ceiling-2","tag-economics","tag-finance","tag-scott-bessent","tag-treasury"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/06\/Biz.Tiana_.061825.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2446781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2693"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2446781"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2446781\/revisions"}],"predecessor-version":[{"id":2446785,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2446781\/revisions\/2446785"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2446782"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2446781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2446781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2446781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}