Yellen Rejects Minting $1 Trillion Coin To Avoid Debt Ceiling

  • Treasury Secretary Janet Yellen dismissed the idea of minting a $1 trillion platinum coin to keep the U.S. from defaulting on the national debt as a “gimmick” that the Federal Reserve is unlikely to go along with, dealing a blow to advocates’ hopes of using it as an end-run around Congress amid the debt-limit debate.
  • Progressive economists and some Democratic lawmakers have pushed for the Treasury to mint a $1 trillion platinum coin and deposit it at the Federal Reserve to raise the debt ceiling, then use the headroom created by the maneuver to fund more government spending. It would utilize a legal loophole that allows the Treasury to mint platinum coins of any denomination.