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Goldman Warns the Dollar's Grip on Global Markets Might Be Over

  • Recommends investors keep buying gold, boosting forecasts
  • U.S. policy is triggering greenback ‘debasement fears’
Bloomberg business news
Dollar to Fall Quite a Bit in Coming Months: AxiCorp’s Innes
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Goldman Sachs Group Inc. put a spotlight on the suddenly growing concern over inflation in the U.S. by issuing a bold warning Tuesday that the dollar is in danger of losing its status as the world’s reserve currency.

With Congress closing in on another round of fiscal stimulus to shore up the pandemic-ravaged economy, and the Federal Reserve having already swelled its balance sheet by about $2.8 trillion this year, Goldman strategists cautioned that U.S. policy is triggering currency “debasement fears” that could end the dollar’s reign as the dominant force in global foreign-exchange markets.