[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Benzinga [@Benzinga](/creator/twitter/Benzinga) on x 306.8K followers Created: 2025-07-22 00:59:51 UTC The U.S. dollar's dominance as the global reserve currency may be at risk if the Federal Reserve intervenes to control rising interest rates by purchasing bonds, warns Fidelity's Jurrien Timmer. He says such interference could weaken the dollar’s “supremacy premium” by increasing the money supply and devaluing the currency. Timmer points to soaring U.S. debt levels since 2020, driven by pandemic spending and the recent debt ceiling hike. If the Fed resumes bond buying to manage rising yields, he believes the U.S. could enter an "unsustainable debt spiral." He compares the situation to Japan’s experience between 2011 and 2014, when bond market intervention led to a sharp decline in the yen. “Currencies are the release valve for unsustainable fiscal policy,” Timmer says. Chatham House expert David Lubin adds another warning. He says the Trump administration’s plan to devalue the dollar could further damage its global role. Lubin cautions that weakening the dollar on purpose would add uncertainty to the global economy and harm U.S. interests. Together, their concerns suggest that both monetary and political moves could endanger the dollar’s status as the world’s most trusted currency.  XXXXX engagements  **Related Topics** [debt](/topic/debt) [united states debt](/topic/united-states-debt) [central bank actions](/topic/central-bank-actions) [money](/topic/money) [rates](/topic/rates) [federal reserve](/topic/federal-reserve) [currency](/topic/currency) [dominance](/topic/dominance) [Post Link](https://x.com/Benzinga/status/1947461555311755503)
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Benzinga @Benzinga on x 306.8K followers
Created: 2025-07-22 00:59:51 UTC
The U.S. dollar's dominance as the global reserve currency may be at risk if the Federal Reserve intervenes to control rising interest rates by purchasing bonds, warns Fidelity's Jurrien Timmer.
He says such interference could weaken the dollar’s “supremacy premium” by increasing the money supply and devaluing the currency.
Timmer points to soaring U.S. debt levels since 2020, driven by pandemic spending and the recent debt ceiling hike. If the Fed resumes bond buying to manage rising yields, he believes the U.S. could enter an "unsustainable debt spiral."
He compares the situation to Japan’s experience between 2011 and 2014, when bond market intervention led to a sharp decline in the yen. “Currencies are the release valve for unsustainable fiscal policy,” Timmer says.
Chatham House expert David Lubin adds another warning. He says the Trump administration’s plan to devalue the dollar could further damage its global role. Lubin cautions that weakening the dollar on purpose would add uncertainty to the global economy and harm U.S. interests.
Together, their concerns suggest that both monetary and political moves could endanger the dollar’s status as the world’s most trusted currency.
XXXXX engagements
Related Topics debt united states debt central bank actions money rates federal reserve currency dominance