U.S. not considering canceling debt held by China – Trump adviser

FILE PHOTO: White House National Economic Council Director Larry Kudlow speaks during a “small business relief update” video conference call event with banking executives to discuss the U.S. government’s rescue program for businesses hurt by the coronavirus pandemic, in the Roosevelt Room at the White House in Washington, U.S., April 7, 2020. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – President Donald Trump’s top economic adviser said on Thursday it was “unequivocally untrue” that the administration was considering cancelling some debt held by China as a way to strike at Beijing for perceived shortfalls in its candidness on the coronavirus pandemic, a CNBC reporter said on Twitter.

The Washington Post, citing two people with knowledge of internal discussions, reported on Thursday that some administration officials had discussed the idea.

White House economic adviser Larry Kudlow told CNBC reporter Eamon Javers the idea was “absolutely and unequivocally untrue,” Javers said on Twitter.

“The full faith and credit of U.S. debt obligations is sacrosanct,” Javers quoted Kudlow as saying. “And so is our commitment to maintaining the U.S. currency as the world’s reserve currency.”

Reporting by Tim Ahmann; editing by Susan Heavey

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