Minting a $1 trillion coin may be legal but is an 'unworkable' option to avoid a catastrophic US debt default, Moody's Analytics chief economist says

• Mark Zandi said a $1 trillion coin may be legal but is an unrealistic fix to the debt crisis.
• The law authorizing platinum coins had commemorative coins in mind, the Moody's chief economist said.
• It would also politicize the Fed and jeopardize its independence, he added.

Moody Analytics chief economist Mark Zandi rejected the idea of a $1 trillion coin as a serious solution to avoiding a US debt default.

In a written testimony for a Senate hearing on the debt limit, he said federal law gives the US Treasury authority to mint platinum coins. But the law had commemorative coins in mind, not "circumventing Congress' power of the purse," Zandi said.