President Biden is gradually warming to the idea of unilaterally canceling the debt ceiling by invoking the 14th amendment.
In the event bipartisan talks fail to solve the crisis, using the Civil War-era law would definitely create turmoil, possibly plunge the US into a recession and surely start a legal fight, Zandi told Yahoo Finance in an interview Wednesday.
The debate over invoking the 14th amendment to solve a debt-ceiling crisis stretches back for years and centers around one line in the constitutional amendment ratified in 1868. It reads: “the public debt of the United States, authorized by law…shall not be questioned.”
Biden confirmed on Tuesday night that his administration has studied the 14th amendment and he specifically mentioned Tribe’s endorsement, saying the maneuver “would be legitimate” as a means to end the debt ceiling standoff.
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