US Treasury Secretary Janet Yellen calls for an increase in the debt ceiling

US Treasury Secretary Janet Yellen has warned that it is "absolutely essential" for Congress to raise the debt ceiling by October 18 to prevent US default. At the same time, however, she added that she refuses to use a legal loophole in the form of a law that allows the Ministry of Finance to resolve the crisis by issuing a platinum coin. As Yellen said in an interview with CNBC, she does not agree with the issuance of a $ 1 trillion (€ 861.92 billion) platinum coin, which would have solved the current crisis without an agreement in Congress. The idea is based on a legal loophole that allows the ministry to issue platinum coins of any denomination. Some progressive commentators and congressmen for the Democratic Party have proposed the issuance of one or more $ 1 trillion coins. The United States would break the deadlock as Republicans refuse to support raising the $ 28.4 trillion debt ceiling. "I don't agree with that and I don't think we should seriously think about it," Yellen said. According to her, such a step (issuing a platinum coin) would be the same as asking the central bank to print money to cover the deficit, which Congress refuses to cover by issuing bonds. According to Yellen, this would lead to the "exact opposite" of what Congress wants, and continue to trust Congress and the US government to be able to pay their debts. According to the minister, it is up to the head of the House of Representatives, Nancy Pelosi, and the leader of the Democratic majority in the Senate, Chuck Schumer, to find a way to increase the debt ceiling in Congress. "All I can say is that it is absolutely essential that the debt ceiling be raised," Yellen said. She added that a possible default would be a "disaster" that would lead to a recession and jeopardize the status of the dollar as a reserve currency.