Jamie Dimon, CEO of JPMorgan Chase, has warned that the dollar’s status as the world’s reserve currency depends on American military supremacy. He stated that if the United States is not the strongest military and economic power in twenty-five years, the dollar will lose its reserve currency status. Daniel McDowell, an expert from Syracuse University, explained that the link between military power and dollar dominance operates through ally confidence: if allies doubt the United States’ ability to defend itself or protect them, their confidence in the dollar and U.S. Treasury bonds would decline. Eswar Prasad, from the Brookings Institution, nuanced this analysis by highlighting that economic dynamism and American institutions are more important factors than military power, while acknowledging that the weakening of these pillars would hurt dollar dominance.
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