Economist Podcasts The buck stops here? The threats to dollar primacy
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Apr 15, 2025 
Henry Kerr, Economics editor at The Economist, and Sophie Pedder, Paris bureau chief at The Economist, delve into the declining trust in the US dollar as a global reserve currency. They highlight concerns over rising bond yields and the fallout from aggressive fiscal policies. The conversation also shifts to the political landscape in France, focusing on rising star Jordan Bardella and his ties to the far-right movement. Plus, they discuss Hong Kong's efforts to improve taxi services and enhance tourist experiences amidst competition from ride-hailing services.
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Dollar's Reserve Currency Status Under Threat
- A sell-off in US bonds and the dollar suggests a potential threat to the dollar's reserve currency status.
- This combined sell-off, coupled with Congress's fiscal loosening, worries investors.
Administration's View on Dollar
- Some senior figures in the Trump administration are not keen on the dollar's reserve currency status.
- They view the strong dollar as a tax on manufacturing workers, making US exports more expensive.
Potential Consequences of Dollar Decline
- If the dollar loses its reserve status, bond yields could rise, increasing US debt interest costs.
- This could force Congress to stabilize the bond market, similar to the 2008 financial crisis.