In a rare public statement, five former U.S. Treasury secretaries have voiced their apprehension regarding the current administration's handling of Treasury Department affairs. Writing an op-ed in The New York Times, Robert Rubin, Lawrence Summers, Timothy Geithner, Jacob Lew, and Janet Yellen expressed significant concerns over actions taken by the Trump administration and Elon Musk's Department of Government Efficiency (DOGE) team. They warned that these actions threaten the integrity of the nation's financial commitments.
The former secretaries, who served under Democratic presidents, criticized both the Trump administration and the DOGE team for allegedly undermining U.S. financial commitments unlawfully. They emphasized that any selective suspension of authorized payments could resemble a form of default, threatening the credibility of U.S. financial systems.
"We have during our service in the Treasury Department faced moments of crisis, when the specter of an American default loomed," the former secretaries wrote.
The controversy centers around the Treasury Department's payment disbursement system, which processes over $5 trillion in federal funding. The Trump administration and Musk's DOGE team have reportedly targeted this system for budget cuts and staff reductions. Emails obtained by The Times suggest that Tom Krause, a member of Musk's team, was granted access to this sensitive payment system, raising questions about the motives behind these actions.
Despite these concerns, Kevin Hassett, a top economic advisor to President Donald Trump, dismissed the claims made by the former secretaries. He vehemently denied that Elon Musk holds undue influence over the Treasury Department.
"This idea that there's a puppet master telling the Treasury secretary what to do, and therefore all the Treasury secretaries need to be, like, alarmed, that's just left-wing media, you know, poppycock," Hassett said.
Hassett further asserted that Treasury Secretary Scott Bessent remains firmly in control of the department's operations and decisions. He argued that previous spending controls from the Biden administration were inadequate.
"Let's just make it clear the Treasury secretary, Scott Bessent, is in charge of the Treasury," Hassett stated.
The op-ed by the former secretaries comes amid ongoing legal battles over access to the Treasury's payment systems. Members of Musk's DOGE team have reportedly sought and obtained access to these systems, sparking debate over whether such access is justified. The Treasury Department defended its decision to grant access to Krause and his team, citing legitimate reasons for their involvement.
Hassett questioned why critics are focusing on Musk's role at Treasury while dismissing concerns about past spending practices.
"Why are we making up fake things about what Elon is doing, because we're trying to just see where the money's going," Hassett remarked.
He emphasized that significant work remains to rectify previous financial mismanagement.
"And as we go in and look, we're finding lots of things that shouldn't have been sent," Hassett explained. "There's a lot of work to be done to clear that up."
The former secretaries warned that any breach of trust resulting from unauthorized payment suspensions could lead to severe consequences for U.S. credibility on the global stage.
"Any hint of the selective suspension of congressionally authorized payments will be a breach of trust and ultimately, a form of default. And our credibility, once lost, will prove difficult to regain," they cautioned.
Leave a Reply