United States Treasury Secretary Scott Bessent appeared before the House Appropriations Subcommittee on Tuesday, delivering a multi-faceted update on the state of the U.S. economy, trade negotiations, and federal debt outlook.

Bessent rejected the notion that the country is entering a recession, despite a reported contraction in GDP for the first quarter. “Nothing in the data shows we’re in a recession,” he stated, explaining that economic indicators are often subject to revision and expressing confidence that the Q1 GDP figure would be revised upward.

The Treasury Secretary also addressed the growing concern over the U.S. fiscal deficit, which stood at 6.7% last year. He stressed that simply maintaining current levels of government spending was not a viable solution and called for fiscal discipline.

Turning to the debt ceiling, Bessent declared unequivocally, “The U.S. government will never default,” assuring lawmakers that the ceiling would be raised. He emphasized that the Treasury Department would not rely on financial gimmicks to navigate the situation.

Regarding international trade, Bessent revealed that the United States has not yet engaged with China in the latest round of negotiations. However, discussions are ongoing with 17 other trade partners, and he indicated that several countries have made “very good offers.” He hinted that new trade deals could be announced as soon as this week.

In a sobering moment, Bessent characterized the nation’s current debt trajectory as “unsustainable.” He emphasized the importance of the debt-to-GDP ratio, explaining that the goal is to manage absolute debt levels while fostering economic growth. “It’s hard to know when the market would rebel against U.S. debt,” he warned, highlighting the long-term risks of fiscal complacency.

Bessent’s testimony reflects the Trump administration’s approach to balancing economic growth with fiscal responsibility while navigating complex international trade dynamics.