Fed's Waller (voter, hawk): Does not expect the dollar to lose status as reserve currency
- If anything recent events strengthen dollar's status
- Several factors weigh against Yuan as an attractive asset
- Recent commentary warning of a possible decline in the status of the U.S. dollar raises concerns about the effects of sanctions against Russia, U.S. political dysfunction, the rise of digital assets, and China's efforts to bolster usage of the renminbi.
- I do not expect to see the U.S. dollar lose its status as the world's reserve currency anytime soon, nor even see a significant decline in its primacy in trade and finance. Recent developments that some have warned could threaten that status have, if anything, strengthened it, at least so far.
- No need for a central bank digital currency in the US
- We don't want banks holding large amounts of crypto ETFs