GOP member wants Yellen to explain debt limit calculation.

Rep. John Rose Asks Treasury Secretary Janet Yellen for Transparency on Debt Ceiling Deadline

EXCLUSIVE — Rep. John Rose (R-TN), a House Financial Services Committee member, is asking Treasury Secretary Janet Yellen to provide information about the methods and data the Treasury Department used to come to the June 1 debt ceiling deadline.

In a letter obtained by the Washington Examiner, Rose said he is “concerned” about the methods the Treasury used to calculate the “X-date” at which the country will default on its debt. He said the country deserves the most transparent and accurate calculation of the X-date due to the economic fallout that could come from missing it. The letter was sent to Yellen on Thursday.

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“It is therefore imperative that this administration’s Treasury Department not only be genuine and forthright when it declares a certain date as the ‘X-Date’ when the federal government can no longer meet its financial obligations, but also be completely transparent with the methods and data used to determine that potential default date,” Rose said in the letter.

Rose is asking for information on:

• The methods and data used to calculate the X-date
• What specific measures are being taken to mitigate the risk of default
• Which obligations are being prioritized if the country could pay some but not all of its debt

Yellen said the country could default as early as June 1 if the debt ceiling is not raised. She is scheduled to testify in front of the House Financial Services Committee on June 7.

“I am writing to note that we estimate that it is highly likely that Treasury will no longer be able to satisfy all of the government’s obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1,” Yellen wrote. “These estimates are based on currently available data, and federal receipts, outlays, and debt could vary from these estimates.”

The chairman of the committee and one of the lead negotiators for the House on the debt limit talks, Rep. Patrick McHenry (R-NC), said he fully believes Yellen when she says June 1 is the deadline.

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“She said June 1, and she is in charge of cash management. There’s a whole bureaucracy within the Treasury. They don’t play games,” McHenry said. “[Yellen] has enormous experience, and she’s a straight shooter. And I don’t think there’s any wiggle room for us. … We recognize the deadline that I think is operational for us.”

House Speaker Kevin McCarthy (R-CA) and his chief negotiator, Rep. Garret Graves (R-LA), have also said they believe Yellen when she says the deadline to raise the debt ceiling is June 1 and that is the deadline the House is working off of.

Why Rep. John Rose is Asking for Transparency on Debt Ceiling Deadline

Rep. John Rose (R-TN), a House Financial Services Committee member, is asking Treasury Secretary Janet Yellen to provide information about the methods and data the Treasury Department used to come to the June 1 debt ceiling deadline. In a letter obtained by the Washington Examiner, Rose said he is “concerned” about the methods the Treasury used to calculate the “X-date” at which the country will default on its debt. He said the country deserves the most transparent and accurate calculation of the X-date due to the economic fallout that could come from missing it.

Rose is asking for information on:

• The methods and data used to calculate the X-date
• What specific measures are being taken to mitigate the risk of default
• Which obligations are being prioritized if the country could pay some but not all of its debt

Yellen said the country could default as early as June 1 if the debt ceiling is not raised. She is scheduled to testify in front of the House Financial Services Committee on June 7.

House Speaker Kevin McCarthy (R-CA) and his chief negotiator, Rep. Garret Graves (R-LA), have also said they believe Yellen when she says the deadline to raise the debt ceiling is June 1 and that is the deadline the House is working off of.

It is important for the Treasury Department to be transparent with the methods and data used to determine the potential default date, as the economic fallout from missing the X-date could be severe. Rep. Rose’s request for transparency is a step towards ensuring that the country has the most accurate and reliable information regarding the debt ceiling deadline.