The possibility of a US default on its sovereign debt is no longer off the table. A potential financial catastrophe is looming, requiring swift action. According to Treasury Secretary Scott Bessent, the nation is approaching a critical breaking point. Without congressional approval to raise the debt ceiling, the United States could default as early as August.

Bessent cautioned that there is a credible risk that the government's "cash and extraordinary measures will be exhausted in August while Congress is scheduled to be in recess." He urged lawmakers to raise or suspend the debt limit by mid-July, calling it essential to "protect the full faith and credit of the United States."

Preliminary estimates indicate that the United States could run out of cash to cover obligations amounting to over $36.2 trillion by August. Therefore, this situation requires urgent attention.

Earlier, The New York Times also reported that the US could default by mid-July if lawmakers fail to approve a debt limit increase once again.