Federal Reserve Governor Waller Advocates for Continued Reliance on US Dollar
US Dollar’s Dominance in International Trade
Federal Reserve Governor Christopher Waller believes that the U.S. dollar will remain the world’s reserve currency and continue to dominate international trade, providing a critical advantage for the U.S. economy on a global scale.
Factors Potentially Affecting the Dollar’s Status
Waller expressed concerns about speculation regarding a possible decline in the U.S. dollar’s status due to various issues such as sanctions against Russia, political challenges in the U.S., the rise of digital assets, and China’s efforts to promote the use of its currency.
Stability of the Dollar in the Global Economy
Despite these concerns, Waller emphasized that the dollar’s role in the world economy remains robust and has not experienced a significant decline. He pointed out that the increased use of digital assets tied to the dollar, such as stablecoins, has enhanced the currency’s international profile.
Challenges Faced by U.S. Adversaries
Waller highlighted that U.S. adversaries have limited alternatives to the dollar, as international investors are hesitant to use China’s currency due to uncertainties about Chinese institutions.
Investor Confidence in U.S. Treasuries
During times of global uncertainty, investors turn to U.S. Treasuries to stabilize the value of their assets, further solidifying the dollar’s position as a reliable reserve currency.
Outlook for the Future of the US Dollar
Waller expressed confidence in the longevity of the U.S. dollar’s status as the world’s reserve currency, stating that recent developments have only strengthened its position in trade and finance.
