Yellen: Urgent action needed on debt limit, rejects $1T coin

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — U.S. Treasury Secretary Janet Yellen said Oct. 18 remains the date she is likely to run out of resources to stave off an unprecedented default on the nation’s debt without congressional action to raise the debt limit. She rejected the idea of minting a $1 trillion coin to avoid a default. Appearing on CNBC Yellen said that if a default were to occur she would expect a recession. A default also would prevent the government from paying benefits to 50 million Social Security recipients and meeting its other bills. Yellen said it would be “catastrophic” if the government did not have the resources to pay its bills.