The OMFIF Podcast The dollar's fight for supremacy
Aug 6, 2025
In a thought-provoking discussion, Ellie Groves, Head of Strategy at State Street Investment Management, delves into the future of the dollar amid rising doubts about its supremacy. She explores de-dollarisation trends and potential rival currencies, highlighting the impact of U.S. economic policies. The conversation also touches on central bank independence and how political dynamics can shape monetary policy. Investment strategies are reevaluated, with gold and private markets emerging as significant players in the evolving financial landscape.
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Dollar's De-dollarisation Challenge
- De-dollarisation has been discussed a lot but no clear replacement for the dollar exists yet.
- Most dollar outflows in 2025 come from new investments diversifying into gold or euros, not existing dollar assets moving.
Trump's Paradoxical Support for Powell
- Despite Trump's antagonism, Federal Reserve Chair Jay Powell enjoys significant global respect and support.
- Trump might unintentionally strengthen Powell's position despite their conflicts and public attacks.
Central Banks: Autonomy Over Independence
- Central banks are better described as having autonomy, not complete independence.
- They function as part of an organic whole with the government, balancing autonomy with coordinated objectives.
