London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Yellen calls $1 trillion coin idea 'a gimmick'

Yellen calls $1 trillion coin idea 'a gimmick'

The treasury secretary says it is not a viable alternative to raising the debt ceiling

Treasury Secretary Janet Yellen threw cold water on the idea of minting a $1 trillion coin as a way to get around raising the U.S. debt limit to avoid default, calling the notion supported by several Democrats "a gimmick."

When asked about the proposal on CNBC's "Squawk Box," Yellen said, "I'm opposed to it, and I don't think we should take it seriously."

Treasury Secretary Janet Yellen.


"It's really a gimmick," the treasury secretary explained, "and what's necessary is for Congress to show that the world can count on America paying its debts."

"The platinum coin is equivalent to asking the Federal Reserve to print money to cover deficits that Congress is unwilling to cover by issuing debt. It compromises the independence of the Fed, conflating monetary and fiscal policy, instead of showing the Congress and the administration can be trusted to pay the country's bills. It really does the opposite."

Rep. Rashida Tlaib, D-Mich.


The idea of minting a $1 trillion coin has been around since 2011 and has gained traction of late among progressive lawmakers including Reps. Rashida Tlaib of Michigan and Jerry Nadler of New York, as Republicans refuse to join Democrats in voting to raise the limit. Meanwhile, Democrats – who control both chambers of Congress and the White House – have thus far refused to raise it themselves through reconciliation.

Leftist economist Paul Krugman wrote an op-ed in The New York Times last week urging President Biden to "ignore the debt limit and mint a $1 trillion coin," but admitted himself in the piece that the proposal is a "gimmick," arguing, "given the stakes, who cares if the approach sounds silly?"

WASHINGTON, DC - OCTOBER 04: White House Press Secretary Jen Psaki


But the Biden administration has already ruled out the $1 trillion coin plan. When asked about it Monday during a briefing, White House press secretary Jen Psaki said, "We obviously look at a range of options and none of those options were viable, either because they wouldn't be accepted by the Federal Reserve, by the guidance of our treasury secretary or just by legal restrictions."

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×