Refuting the "collapse theory" of the CEO of JPMorgan! Bessent stubbornly states: the U.S. will never default.

On June 2, the Financial Association reported (Editor: Xiaoxiang) that U.S. Treasury Secretary Basant insisted on Sunday (June 1) that the U.S. would never default on its debt. In a recent media interview, he attempted to allay Wall Street's concerns about the status of U.S. public finances, following JPMorgan CEO Jamie Dimon's warning last Friday that a collapse in the U.S. bond market was only a matter of time.

During a media interview on Sunday, Basant stated, "The United States will never default, it will never happen. We are at the warning line and will never hit the wall."

With President Trump urging Congress to pass the budget bill he refers to as the "Beautiful Bill" as soon as possible, investor concerns over the scale of the U.S. federal debt have recently increased, with expectations that the bill will further escalate the federal deficit. The U.S. Senate will formally review the bill this week.

Many investors are also concerned about the debt ceiling issue—under the proposed legislation, the debt ceiling will be raised by $4 trillion, which may now be further constrained by controversies in Congress and internal conflicts within the Republican Party.

In this regard, Basant refused to disclose the so-called "X day"—the date when the Treasury exhausts its cash and the special accounting measures used to meet its federal obligations within the debt ceiling run out. Basant stated, "We will not disclose the 'X day' because we want to use it to push the bill forward."

Last month, Basant told lawmakers that if the debt ceiling was not raised or suspended by then, the U.S. would likely exhaust its borrowing authority before August. Many Wall Street Analysts and forecasting institutions believe that the "X day" will arrive sometime between late August and mid-October.

Refuting the "Wall Street King."

Bessent also refuted the warning from "Wall Street's top dog," $JPMorgan (JPM.US)$ CEO Jamie Dimon last Friday about the impending collapse of the U.S. bond market.

At that time, Dimon stated that the U.S. government and the Federal Reserve's "massive overspending" and quantitative easing would lead the U.S. bond market to "collapse" under heavy pressure. He called on the Trump administration to put the U.S. on a more sustainable path.

Dimon claimed that he had previously warned regulators that the U.S. bond market would encounter problems. "I told you, this situation will definitely happen. By then, you will panic, but I will not panic, we will be alright."

Bessent clearly dismissed Dimon's warning. Bessent pointed out, "I have known Jamie for a long time; throughout his career, he has often made such predictions. Fortunately, none have come true."

It is worth mentioning that the U.S. Congressional Budget Office warned in March that, even without new budget legislation, the U.S. debt-to-GDP ratio would exceed the peak levels of the 1940s in the coming years. Last month, after S&P and Fitch, the last of the three major global rating agencies—Moody's—also stripped the U.S. of its Aaa sovereign credit rating.

Currently, many senators in the U.S. Senate are uneasy about the government's high spending levels and the scale of debt ceiling increases. Even Musk, who just stepped down from the "Department of Government Efficiency" (DOGE) last week, expressed his "disappointment" in an interview aired on Sunday regarding the "massive spending bill," which undermined the cost-cutting efforts of the "Department of Government Efficiency."

However, Bessent stated that many predictions actually do not account for the "significant" revenue increases brought about by Trump's massive new import tariffs, which could yield trillions of dollars for the government. Bessent said, "This year's government budget deficit will be lower than last year's deficit, and in two years, the deficit will further decrease."

Editor/Rocky