Treasury Secretary Yellen Says US Government Will Take ‘Any Steps Necessary’ to Preserve Its Financial Dominance – According to a report, US Treasury Secretary Janet Yellen stated that while her country’s financial system is still in good shape, the US government is willing to take “any necessary steps” to preserve its dominance.
Yellen also praised the recent efforts made by US authorities to shore up the financial sector following the failures of Silicon Valley Bank and Signature Bank in her speech at Johns Hopkins University’s School of Advanced International Studies. Yellen’s remarks come amid a rising call for the introduction of an alternate reserve currency.
According to a recent report, various countries, led by Russia and China, are pursuing cross-border settlement solutions that do not use the US currency. These countries accuse the US administration of weaponizing the dollar and exploiting its dominant position in the global financial system to punish its rivals.
These claims, together with continued efforts to de-dollarize, have spurred experts to warn that the US dollar may someday lose its status as the world’s most powerful currency. If the US loses this status, it will lose its capacity to project its financial influence globally.
Yellen, on the other hand, guaranteed that the US government would take action to ensure that its financial system is the strongest and safest in the world. “The U.S. banking system remains sound and we will take any necessary steps to ensure the United States continues to have the strongest and safest financial system in the world,” Yellen reportedly said.
Despite recently admitting that the weaponization of the US dollar could cause problems for her country, she cautioned in her speech that the US government will not hesitate to penalize Chinese enterprises that breach its sanctions against Russia. She also stated that her government will penalize human rights abusers.