Trump turned the dollar into a foreign policy tool, and now risks undermining the currency’s extraordinary status, think tank says

The Trump administration has leveraged the dollar as a foreign policy tool by providing emergency currency swaps to other nations, effectively using dollar liquidity as a geopolitical favor. Economists warn that this approach risks undermining the dollar's unparalleled status as the world's primary reserve currency. The potential consequences could include reduced trust in the U.S. financial system and increased global reliance on other currencies, which could fundamentally alter international trade and finance dynamics. This move challenges the independence of the Federal Reserve and could have long-term implications for global economic stability.