The U.S. hits the statutory debt ceiling of $31.4 trillion.

(Reuters file photo)

[Financial Channel/Comprehensive Report] The United States hit the US$31.4 trillion (approximately NT$957 trillion) debt ceiling set by Congress on the 19th, forcing the Treasury Department to take unconventional measures to make the government pay the bills.

U.S. Treasury Secretary Janet Yellen said the Fed would likely not accept it if the Biden administration tried to mint a $1 trillion platinum coin to avoid breaching the debt ceiling.

The Wall Street Journal reported that some officials in the Biden administration and congressional Democrats are discussing possible ways to solve the debt ceiling. In the event of a possible default, the U.S. Treasury Department can use an obscure law to authorize the minting of platinum coins.

Please read on...

Under the proposed plan, the Treasury Department would mint a $1 trillion coin, deposit it with the Fed, and then withdraw the money to pay government bills.

This plan is tantamount to bypassing Congress to solve the debt ceiling problem.

U.S. Treasury Secretary Yellen said that it must not be assumed that the Fed will do this, especially when encountering such flashy ideas.

He emphasized that there is no need for the Fed to accept the aforementioned plan, and the Fed has not faced relevant requirements, and what to do is entirely up to the Fed to decide on its own.

A Fed spokesman declined to comment on the proposal.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news