Bangladesh, May 12 -- The United States could face a catastrophic default on its financial obligations as early as August if Congress fails to raise or suspend the debt ceiling, US Treasury Secretary Scott Bessent warned in a letter to lawmakers on May 9. As the nations debt continues to balloon past its statutory limit, political gridlock in Washington threatens to push the country into dangerous fiscal territory with global ramifications.

In a stark message addressed to House Speaker Mike Johnson, Bessent urged Congress to act decisively and finalize a deal by mid-July, before lawmakers adjourn for their scheduled summer recess. Failing to act, he warned, could unleash widespread disruption across financial markets, destabilize consume...