Why the End of US Dollar Dominance Is Now Possible

In this episode of Bloomberg's "Trumponomics," Stephanie Flanders interviews Saleha Mohsin and Dr. Barry Eichengreen about the future of the dollar as the world's dominant reserve currency under the Trump administration. They discuss the historical factors that have contributed to the dollar's strength, including economic and geopolitical influences, and examine whether Trump's policies are undermining confidence in the currency. The conversation covers potential consequences of a declining dollar, such as increased borrowing costs for the U.S. government and the impact on American consumers, while also considering alternative currencies and the possibility of a multi-currency global financial system. The guests also explore the potential for a sudden "dollar route" and how the US government might react, including the possibility of raising interest rates to defend the dollar's value.