As the debt ceiling debate takes over the headlines in the U.S., so is the idea of minting a $1 trillion platinum coin, which is a surprising option available to the Treasury Department to raise the debt ceiling without bipartisan support.
The #MintTheCoin plan is gaining traction in some circles again as a deeply divided Congress makes the debt ceiling debate extra difficult, with fierce arguments on both sides of the aisle around debt, inflation, and the path forward.
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On the $1 trillion platinum coin loophole, which potentially allows the Treasury Department to mint platinum coins of any denomination and deposit them at the Federal Reserve in exchange for the U.S. federal debt, Yellen was very skeptical.
In an interview with The Wall Street Journal, Yellen said that the Federal Reserve is unlikely to agree to such a plan, calling the scheme a "gimmick."
"It truly is not by any means to be taken as a given that the Fed would do it, and I think especially with something that's a gimmick," she said in an interview published Sunday. "The Fed is not required to accept it, there's no requirement on the part of the Fed. It's up to them what to do."
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Several Biden administration officials and Democrats once again started to talk about this option. The issue was also raised in the fall of 2021, the last time the debt ceiling had to be raised.
At the time, Yellen also spoke out, stating that she was against the idea. "I'm opposed to it, and I don't believe that we should consider it seriously. It's really a gimmick," Yellen told CNBC in 2021.
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