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MNI BRIEF: US Must Mind Debt to Keep FX Status- Fed's Kaplan

(MNI)

Dallas Fed President Robert Kaplan said Tuesday the U.S. must eventually reduce its government debt burden in order to maintain the dollar's global reserve currency status.

"We would be wise not to be too sanguine that the dollar is always going to be the world's reserve currency," Kaplan told a webinar, adding the the country must "find ways to deleverage" once the pandemic-related slump is over.

Kaplan told MNI in an interview last week he supports the Fed's easy monetary policy. But he said Tuesday that rising stock prices show "there are consequences and side-effects of injecting that amount of liquidity."

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

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