MNI BRIEF: Powell Sees USD Remaining Global Reserve Currency

Federal Reserve Chair Jerome Powell said Tuesday the U.S. dollar will remain the world's reserve currency and Treasury markets are functioning well.

Asked about speculation that foreign investors were dumping Treasuries during market turmoil in April and comments that Treasuries are losing their safe-haven status, Powell said: "We need to be careful about these narratives that pop up quickly. We're the world's reserve currency and the world's greatest democracy and the dollar is always going to be for a long time the reserve currency and the place where people want to be."  

"Treasury markets are functioning well and normally, and they did function through a period of substantial stress," he told the House Financial Services Committee. (See: MNI INTERVIEW: US Bond Selloff A 'Stern Warning' To Fed -Stein)