Psaki Rules Out Minting Coin to Resolve U.S. Debt-Limit Dispute
(Bloomberg) -- White House Press Secretary Jen Psaki said the Biden administration won’t mint a new coin to resolve a standoff with Republicans over the debt ceiling, saying it’s not a “viable” option.
“We obviously look at a range of options and none of those options were viable,” she said of the proposal to mint a coin or to invoke the 14th Amendment of the Constitution. “Either because they wouldn’t be accepted by the Federal Reserve, by the guidance of our Treasury secretary, or just by legal restrictions.”
Section 4 of the 14th Amendment says that the “validity” of the government’s debt “shall not be questioned,” potentially suggesting one way around the congressionally enacted debt limit. Some analysts have suggested the Treasury Department could simply mint a platinum coin in a value of $1 trillion or more and deposit it at the Federal Reserve to give the government greater borrowing authority.
“It requires Congress acting. That is the one path forward,” Psaki said.
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