International Finance: Biden may have to act unilaterally to avoid default, says California Democrat

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The US will not default on its debt but the Biden administration might be forced to take unilateral action to head off a crisis, Representative Ro Khanna, a California Democrat, offering several possible executive manoeuvres.

“The question is whether it’s going to come to unilateral action by the executive branch,” Khanna said during a meeting with Bloomberg News reporters and editors on Monday.

Treasury Secretary Janet Yellen has rejected the coin idea, expressing doubt that the Federal Reserve would accept such a note. Khanna would like to strategically cut the defence budget and levy taxes on the very rich – including the billionaires of his Silicon Valley district who, he said, continue to send him back to Congress.

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