Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Russian agency: Russia will conduct a nuclear test if the US does
Al-Nakhalah: We are the rightful owners, and we must fight to retrieve our rights
Al-Nakhalah: The enemy and its allies must know that we can never surrender to their terms and diktats after all the sacrifices made
Al-Nakhalah: The prisoner exchange clause can be completed in the next few days, and thus we will have pulled the [explosion] fuse and removed the enemy's justifications for aggression
Al-Nakhalah: The Resistance has expressed its willingness to negotiate on the basis that there are items that can be dealt with positively, the first of which is the prisoner exchange item
Al-Nakhalah: Trump's plan entails the Palestinian people's declaration of complete surrender to the enemy
PIJ Secretary-General, Ziyad al-Nakhalah, in an address aired on Al Mayadeen: The Resistance is engaging in a fierce negotiating battle under the so-called Trump plan
Russian Federation Council approves joint military cooperation agreement with Cuba
Al-Nunu: Today, the lists of prisoners required to be released, the agreed-upon criteria and numbers, were exchanged
Al-Nunu from Sharm el-Sheikh: Negotiations focused on mechanisms for implementing an end to the war, the withdrawal of occupation forces from the Gaza Strip, and the exchange of prisoners

US dollar may lose status as global reserve currency: Yellen

  • By Al Mayadeen English
  • Source: Agencies
  • 22 Mar 2023 23:37
  • 16 Shares
3 Min Read

The Fed has just recently announced it raised interest rates by 25 basis points, bringing the benchmark funds rate to a range of 4.75% to 5%.

  • x
  • US dollar may lose status as global reserve currency: Yellen
    Treasury Secretary Janet Yellen listens to questions from lawmakers during a Senate Appropriations Subcommittee on Financial Services and General Government hearing to examine proposed budget estimates and justification for the 2024 fiscal year at the Capitol in Washington on Wednesday, March 22, 2023 (AP Photo/Amanda Andrade-Rhoades)

At a Senate hearing on Wednesday, Treasury Secretary Janet Yellen said that if the US defaults on its debt, this would result in a massive loss of confidence in the US dollar, eventually leading to the loss of its status as the world's global reserve currency.

"It would be a failure of the US government for the first time since 1789 to fail to pay bills that it incurred and it would cause a loss of confidence in the United States as the safest country, that our currency is a reserve country with currency used by the world," said Yellen during a Senate hearing.  

The recent banking crisis which was triggered in part by rising interest rates has resulted in changes at an unprecedented scale due to investors' loss of confidence in the currency. 

Not only have energy markets slumped to their lowest levels but the price of gold has hiked up to nearly $2,000.

Read more: US banking crisis to worsen if structural problem not addressed

A recent study revealed that nearly 200 American banks may have financial complications that have not yet been detected. 

In Monetary Tightening and U.S. Bank Fragility in 2023, researchers contended that "there are 186 banks with a negative insured deposit coverage ratio”. 

Related News

US dollar outlook: Short-term gains, long-term losses from tariffs

Dollar becoming less attractive for emerging market investors

“Our calculations suggest these banks are certainly at a potential risk of a run, absent other government intervention or recapitalization.” the researchers explain. 

The study published last week showed that the banks with troubled balanced sheets had exposure to $300 billion worth of insured deposits.

“The losses to the deposit insurance fund would total approximately $10 billion,” the study reads. “If the FDIC shut these banks following a run, there would be no funds left for the remaining uninsured depositors. In other words, the decision [by depositors] to run would have been a rational one.”

Too Soon to Tell?

Federal Reserve Chairman Jerome Powell said at a press conference earlier today that it is too soon to tell how the banking crisis will impact interest rates in the short or long term.

"Too soon to tell how banking fallout will impact rates," Powell said, noting that the Fed increased interest rates by an additional 25 basis points on Wednesday.

He further said that central officials are not foreseeing rate cuts this year as their main priority remains on fighting inflation which is considered still too high. 

"[Fed policymakers] don't see rate cuts this year," Powell said. "They just don't. As always, the path of the economy is uncertain. Policy is going to reflect what happens rather than what we write down in the SEP [Summary of Economic Projections]. That's not my baseline expectation [a rate cut]," he added.

"We have to bring inflation down to 2%," Fed Chair Powell says. "There are real costs to bringing it down to 2% but the costs of failing are much higher." pic.twitter.com/QQBhS5sIRL

— Yahoo Finance (@YahooFinance) March 22, 2023

Read more: US banking sector 'stabilizing' after recent turmoil: Yellen

  • dollar crisis
  • Federal reserve
  • debt default
  • Dollar
  • Janet Yellen
  • Treasury

Most Read

Tucker Carlson speaks at a memorial for Charlie Kirk, Sunday, September 21, 2025, at State Farm Stadium in Glendale, Arizona (AP)

Tucker Carlson: Israeli officers gave orders on Iran inside Pentagon

  • Politics
  • 2 Oct 2025
A Hamas fighter in combat fatigues stands before the ceremony for the handover of Israeli captives to the Red Cross in Nuseirat, central Gaza Strip, Saturday, February 22, 2025 (AP)

Hamas responds to Trump plan, backs Gaza withdrawal, exchange

  • Politics
  • 3 Oct 2025
ap

'Israel' pays influencers $7K per post to whitewash Gaza genocide

  • Politics
  • 1 Oct 2025
Mossad’s secret role in Aldo Moro’s 1978 murder revealed

Mossad’s secret role in Aldo Moro’s 1978 murder exposed

  • Politics
  • 5 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Retired Israeli General Brik says Israel has reached point of no return.
Politics

Retired Israeli General Brik: 'Israel has reached point of no return'

Depleted by foreign wars, US seeks to re-arm for another confrontation
Politics

Depleted by foreign wars, US seeks to re-arm for another confrontation

Gaza’s newborns gasp for life as hospitals collapse amid Israeli war
Health

Gaza newborns gasp for life, share oxygen masks amid collapsed system

UK arms exports to 'Israel' reach record high despite ban calls
Politics

UK arms exports to 'Israel' reach record high despite ban calls

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS