Treasury Can Prioritize Principal, Interest Payments, House Committee Says

The U.S. Treasury does have the capability to prioritize principal and interest payments, the House Financial Services Committee said Monday, citing documents they subpoenaed which the Republicans say contradicts the testimony of Treasury Sec. Jack Lew and other White House officials. According to the committee, the New York Fed has run simulations since at least March 2011. During the debt-limit standoff of 2013, a New York Fed memo indicates the Treasury was making such a plan. "Treasury is adamant they will make P&I payments. Not considering possibility of missing debt payments," the email says, according to the committee.