If Congress doesn’t raise the debt ceiling by early June, the U.S. could default on its debt for the first time in history. But there are three things President Biden could do without Congress to avoid a default.
They have been called “highly risky” and a “gimmick” by people like Federal Reserve Chair Jay Powell and Treasury Secretary Janet Yellen. But experts argue they’re worth looking at because they might be better than defaulting. President Biden is even seriously considering one of them.
WSJ explains how the trillion dollar coin, premium bonds and the 14th Amendment could be used to avoid a default.
0:00 The Debt Ceiling Debate
0:57 $1 Trillion Platinum Coin
2:37 Premium Bonds
4:41 14th Amendment
6:10 Discharge Petition
Some days the high-speed news cycle can bring more questions than answers. WSJ’s news explainers break down the day’s biggest stories into bite-size pieces to help you make sense of the news.
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