Navigating U.S. Debt Limit: Scott Bessent's Take on a Complex Issue

Scott Bessent, nominated by President-elect Donald Trump for Treasury Secretary, addressed the nuances of eliminating the U.S. debt limit. In response to Senator Elizabeth Warren, he emphasized understanding the debt limit's role and assured that the U.S. would not default on its obligations under his leadership.

Scott Bessent, the Treasury Secretary nominee chosen by U.S. President-elect Donald Trump, discussed the complexities surrounding the U.S. debt limit during a Senate Finance Committee hearing on Thursday.

Addressing a question from Senator Elizabeth Warren, Bessent described the debt limit as a 'nuanced convention.' He clarified his stance, saying that while the U.S. will not default on its debt, the debt limit's removal could be equated to losing a safety feature, like a car's handbrake.

If confirmed, Bessent expressed his willingness to collaborate with Trump and Congress to potentially eliminate the debt ceiling, signaling a proactive approach to addressing national financial strategies.

(With inputs from agencies.)