Lew Says Fiscal Impasse Erodes U.S. Credibility, Dollar Stature

Treasury Secretary Jacob J. Lew said the U.S. fiscal impasse is undermining the country’s credibility around the world and bolstering the case of nations that want to displace the dollar as the world’s reserve currency.

“It’s no secret: There are discussions around the world where others would like there to be a basket of currencies that might be used as an alternative to the dollar,” Lew said in testimony to the Senate Finance Committee today.

“The world actually counts on us being responsible,” he said. “I met with finance ministers from Africa and with finance ministers from Latin America and it’s challenging when they look at you and they ask what’s going on in Washington -- it makes them nervous about their economies.”

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