Yellen, Janet L – Page 16

Can A Trillion Dollar Coin Resolve the Debt Ceiling Crisis?

The latest standoff over raising the nation’s debt ceiling is giving new life to an old theory about how to avoid a default.

If the debt limit is breached, investors expect Treasury to put bond payments first. It’d be politically and practically fraught.

The Fourteenth Amendment offers a blueprint for tearing down the debt ceiling.

The Treasury Department has started employing “extraordinary measures,” but the path to raising the debt ceiling is likely to be a long one.

The milestone will not immediately affect markets or growth, but it sets the stage for months of entrenched partisan warfare.