The proximity of the U.S. debt limit is a matter of great concern. A default would have severe economic consequences globally.

According to BlockBeats, U.S. Treasury Secretary Besent reiterated his warning that the Treasury is on a 'warning track' regarding its ability to avoid breaching the federal debt ceiling. However, he did not provide a specific timeline. Responding to questions from the House Appropriations Committee, Besent stated that the Treasury would inform Congress when it believes it is nearing the so-called 'X-date,' the point at which it will be unable to pay all government bills on time.

Besent mentioned that the Treasury is still calculating the latest tax season's revenue. The debt ceiling reemerged in early January, and the Treasury has been employing special accounting measures to prevent exceeding the limit while continuing federal debt payments. Wall Street analysts estimate that Congress will need to raise or suspend the debt ceiling between August and October.

Besent emphasized, 'We are on a warning track.' He also reassured that the U.S. government will never default and promised that the Treasury would not resort to 'gimmicks' to circumvent the debt ceiling.