Mohsin (Wednesday, 12:00 PM)

What are the burdens of the US dollar’s role as a reserve currency?

The US for a long time… has had a policy that we want a strong currency… and that means Americans have strong purchasing power to import a lot, but the other side of that coin is that that American exporters are struggling to sell their goods overseas, and so the American manufacturing sector has been hollowed out.

The key pillars that make the dollar the reserve asset: That is not just what investors and traders are saying… It’s rule of law… does the public have trust in its government… does the central bank maintain its… independence… All that feeds into what the dollar is today.

It’s only been three weeks since Liberation Day, and three weeks is not enough to know if a currency or a country's stature in the world has irreversibly been damaged.

The dollar is the world’s anchor currency, so someone has to want to step up, but then also investors… have to want to choose other currency… Everyone wants to talk about the dollar’s reign ending, but no one wants to claim the crown themselves.

Bessent has said publicly that we should be looking at the ten-year [Treasury yield]. I kind of wondered… if the reason for that is to be able to show the president that you can’t target the Federal Reserve and interest rates... maybe that's the way to bring down borrowing costs for average Americans… Maybe that’s the way to approach juicing the economy rather than trying to push the Fed.

What are you looking for in the months ahead to say yes, this is something more fundamental going on, or no, this was an instant market reaction to Liberation Day?

What other countries’ currency stands to benefit if the dollar were to no longer be the global reserve currency?

Do you think Treasury Secretary Scott Bessent’s strategy is to bring yields down?

Saleha Mohsin Senior Washington Correspondent at Bloomberg News

Josh Lipsky

Saleha Mohsin Senior Washington Correspondent at Bloomberg News