President Donald Trump stressed the urgent need to raise the U.S. federal debt ceiling, which he described as "extremely catastrophic" for the country.

The remarks came during Trump's response to a joint press question with billionaire Elon Musk on Friday evening regarding the conclusion of his leadership at the Government Efficiency Agency (DOG).

"We must raise the debt ceiling," Trump stated, "and if we don't raise it, we'll default," emphasizing his belief that the mechanism should be eliminated entirely as it's "extremely catastrophic."

The debt ceiling was last suspended by Congress in 2023 as part of a bipartisan bill passed through an agreement between former President Joe Biden and Republican leadership, averting federal default until early 2025.

The U.S. Treasury Department warned in January that the government would need to implement "extraordinary measures" to prevent default on its over $30 trillion debt - a scenario experts caution would have devastating economic consequences for the nation.

Treasury Secretary Scott Bisent has urged Congress to raise the debt limit by mid-July, as the government's extraordinary measures could be exhausted by August, coinciding with the legislative recess for both chambers (House and Senate).

Congressional Republicans seek to tie the debt ceiling increase to a broader package Trump described as the "Big Beautiful Bill," addressing multiple agenda items including tax relief, unleashing U.S. energy production, government reforms, rolling back previous administration's regulations, border security, and military strengthening.