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7/11, 5:30 PM (Source: TeleTrader)
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Powell warns dollar dominance will not last forever

United States Federal Reserve Chair Jerome Powell warned that it is incorrect to assume that the dollar will remain the global reserve currency "forever, because it won't." However, he pointed out that there is no competitior that could take over that role in the short term.

Powell praised the US rule of law and regulated financial system as positives that help the dollar remain a reserve currency. He added that another currency would need to emerge and fulfill these same requirements in order to take over from the dollar as that is what provides certainty.

The Fed chair added that the US will need to make its fiscal policy sustainable in the mid and long term in order to keep the dollar's currency position in the global market.

Breaking the News / VP