U.S. Treasury Secretary Janet Yellen has attributed the potential decline of the U.S. dollar to the country's frequent use of sanctions in foreign policy.
Speaking to the House Financial Services Committee, Yellen noted that these sanctions are prompting countries to distance themselves from the dollar, weakening its global standing and pressuring the U.S. economy.
Countries like Russia, China, and Hungary have labeled America an economic aggressor, and Yellen warned that unless the U.S. changes its strategy, de-dollarization will continue.
She highlighted that nations are diversifying their currency holdings to avoid U.S. sanctions, citing the growing cooperation between Iran and Russia as an example.
Goldman Sachs predicts a bleak economic future for the U.S., forecasting that BRICS countries will occupy the top two global economic positions by 2075, with India and China surpassing the U.S.
Saudi Arabia, though not a BRICS member, is also expected to see significant economic growth. Recently, it warned the U.S. and UK against freezing Russian assets.
Donald Trump criticized the Federal Reserve’s recent decision to cut its benchmark interest rate by half a percentage point, calling it a “political maneuver” and suggesting that a smaller reduction would have been more appropriate.
The Bank of Japan (BOJ) has opted to keep interest rates steady at 0.25%, leading to a sharp rise in the Nikkei index, which jumped over 700 points.
On September 18, the US Federal Reserve made a notable move by cutting interest rates by 50 basis points, marking the start of a new easing cycle.
The Federal Reserve’s recent 50 basis point rate cut left experts divided.