Is the US Dollar Losing Its Grip? Treasury Secretary Yellen Predicts Slow Decline
The future of the US dollar as the world\'s reserve currency is under scrutiny. US Treasury Secretary Janet Yellen this week warned that there would be a “slow decline” in the US dollar as the global reserve currency. Her assessment signals a potential shift in the global financial landscape, prompting questions about what this means for the US economy and investors worldwide.
Yellen\'s Warning: Expect a Gradual Shift Away from the Dollar
During a congressional hearing, Treasury Secretary Janet Yellen said to expect a gradual decline in the dollar\'s share of global reserves. Her comments were in response to de-dollarization questions, reflecting growing concerns about the dollar\'s long-term dominance. Specifically, in statements Janet Yellen has advised people to diversify their interests as USD is expected to decline.
Former Treasury Secretary Janet Yellen warned on Monday the simultaneous sell-off of dollars and Treasury bonds could signal crumbling faith in the stability of the US currency.
Factors Contributing to the Dollar\'s Potential Decline
Several factors are contributing to the possibility of a "slow decline" in the dollar, including:
- Muscular Use of Sanctions: Over-reliance on sanctions could encourage other nations to seek alternative currencies and payment systems.
- Deteriorating US Economy: Concerns about the long-term health of the US economy are prompting some to question the dollar\'s stability. US will slowly lose its status as a global powerhouse and so will its King Dollar status.
- Failed Foreign Policy: US Treasury Secretary Janet Yellen, says that there should be an expectation of a slow decline in the US dollar as a reserve currency.
- Global De-dollarization Move: As mentioned by TEHRAN, Jun. 14 (MNA) – US Treasury Secretary Janet Yellen says Washington should expect a gradual decline in the dollar\'s share of the global reserve, as the global de-dollarization move gains momentum.
The 2025 Dollar Decline: A Glimpse into the Future?
In 2025, the U.S. Dollar saw an 8% decline in its share of global reserves, causing some to question whether the dollar’s days of dominance are over. 24 de sept. de 2025 The U.S. dollar saw an 8% decline in its share of global reserves in 2025.
How to Prepare for a Potential Dollar Decline
With the US dollar facing potential headwinds, diversification is key. Consider exploring alternative investments, including:
- International Currencies: Invest in currencies from other stable economies.
- Commodities: Consider precious metals like gold and silver.
- International Stocks: Diversify your stock portfolio with international equities.
Read more below about the announcement and ways to prepare. Consult with a financial advisor to develop a personalized investment strategy that aligns with your risk tolerance and financial goals.