Yellen: Urgent action needed on debt limit, rejects $1T coin

WASHINGTON – U.S. Treasury Secretary Janet Yellen said Tuesday that Oct. 18 remains the day she is apt to tally retired of resources to stave disconnected an unprecedented default connected the nation's indebtedness without legislature enactment to rise the indebtedness limit. She rejected the thought of minting a $1 trillion coin to debar a default.

Appearing connected CNBC Yellen said that if a default were to hap “I afloat expect it would origin a recession arsenic well” on with preventing the authorities from paying benefits to 50 cardinal Social Security recipients and gathering the government's different bills.

She said it would beryllium “catastrophic” if the authorities did not person the resources to wage its bills.

Yellen flatly rejected a caller thought that has been enactment guardant to mint a $1 trillion coin and usage that to debar a default connected the debt.

“I americium opposed to it and I don't beryllium judge we should see it seriously,” she said.

“The platinum coin is the equivalent of asking the Fed to mint wealth to screen the debt,” she said. She said what needs to beryllium done is for Congress and the medication to amusement they tin beryllium trusted to wage the country's bills.

Ad

On Monday, President Joe Biden said helium could not warrant that the U.S. authorities volition not default connected the indebtedness arsenic helium sought to enactment much unit connected Republicans to halt blocking a Democratic effort to rise the indebtedness ceiling.

Senate Majority Leader Chuck Schumer, D-N.Y., has said helium volition effort to get authorities passed to rise the indebtedness bounds earlier the deadline but volition request Republicans successful the Senate to hold not to artifact the effort done a filibuster.

Copyright 2021 The Associated Press. All rights reserved. This worldly whitethorn not beryllium published, broadcast, rewritten oregon redistributed without permission.