US Treasury rules out creating $1 trillion coin

The US Treasury has ruled out minting a $1 trillion dollar platinum coin as a way to circumvent the need to raise its national borrowing limit next month.

Ruling out the leftfield strategy means the US is now set for another budget battle, with Congress needing to raise the country's $16.4bn borrowing limit by the end of February or else run the risk of a sovereign default. The idea of minting a coin had gained popularity among some economic commentators, including Nobel laureate Paul Krugman, and had also been backed by Democratic congressman Jerry Nadler. Such an act would have taken advantage of the Treasury's ability to mint platinum coins of any denomination. The $1trn coin would have then been deposited at the Federal Reserve, ...