Recently, a group of former U.S. Treasury Secretaries has raised concerns that President Donald Trump and Tesla CEO Elon Musk could jeopardize the nation’s fiscal commitments.

Five former U.S. Treasury Secretaries have jointly expressed concerns about the risks of political interference in the federal payment system, calling for the preservation of the fiscal system's independence. Their remarks come amid recent actions by officials from the Trump administration and Elon Musk's leadership at the Department of Government Efficiency (DOGE), which have raised "serious concerns" about the potential illegal undermining of America’s fiscal commitments.
 

Joint Statement in The New York Times

In an op-ed published in The New York Times, former Treasury Secretaries Robert Rubin, Lawrence Summers, Timothy Geithner, Jacob Lew, and Janet Yellen—who served under Democratic Presidents Bill Clinton, Barack Obama, and Joe Biden—voiced their apprehensions. They noted, "During our tenures at the Treasury, we faced moments of crisis when the shadow of default loomed over the U.S. Any selective suspension of congressionally authorized payments would undermine trust and ultimately amount to a form of default. Once our credibility is lost, it is difficult to restore."
 

Assurance of Payment System Integrity

The former secretaries emphasized that no Treasury Secretary should be forced into a situation where they must assure the nation and the world of the integrity of the payment system or the commitment to fulfilling fiscal obligations. They highlighted the importance of maintaining trust in the federal payment system.
 

Response from Trump’s Economic Advisor

In response to these concerns, Kevin Hassett, a senior economic advisor to Trump, dismissed the former Treasury Secretaries' warnings during an appearance on CNBC's "Squawk Box." He argued that Treasury Secretary Scott Bessent found the Biden administration's spending controls "unacceptable," suggesting that funds were being spent without accountability.

Hassett also refuted claims that Musk was acting as a "puppet master" behind the scenes at the Treasury, calling it "nonsense." He stated, "Musk's office is right next to mine; he doesn’t control the Treasury."
 

Context of the Controversy

The controversy arises from members of Musk’s DOGE team seeking and obtaining access to the Treasury's highly sensitive payment system. As DOGE and other departments within the Trump administration aim to reduce federal spending and layoffs, the payment system managed by the Treasury’s Fiscal Service has come under scrutiny.
The former Treasury Secretaries referenced a recent New York Times report indicating that the Treasury Chief of Staff initially pushed for a member of Musk's team, Tom Krause, to gain access to the payment system to facilitate freezing allocations to the U.S. Agency for International Development (USAID).
 

Concerns Over Access and Control

The New York Times reported emails that "undermined" the Treasury's explanation for Krause and his team's access to the payment system. The Treasury stated that Krause's team was conducting an "operational efficiency assessment" and was not involved in blocking agency allocations.
The former secretaries argued that this access "subverts" the long-standing practice of having a "small group of nonpartisan career civil servants" operate the payment system. They wrote, "The role of these nonpartisan officials has been compromised by the political actors of so-called DOGE."
 

A Call to Action

They concluded their op-ed by stating, "We are taking this unusual step to write this piece because we are shocked by the risk of the federal payment system being subject to arbitrary and capricious political control, which would be illegal and corrosive to our democratic institutions."

Hassett’s Rebuttal
Hassett strongly countered the views of the former Treasury Secretaries, asserting, "Let’s be clear, Secretary Bessent is in charge of the Treasury." He pointed out that the previous administration faced issues with spending controls, claiming that many funds were misused.
Hassett reiterated, "We are working to address these problems. The notion that Musk is manipulating the Treasury from behind the scenes is just nonsense from the left-wing media."
 

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. 

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.