Beth Hammack, co-head of global financing at Goldman Sachs, said failure to find a solution to the U.S. debt ceiling impasse would pose a threat to the dollar's reserve currency status.
“There are real risks to the dollar,” said Hammack, who is stepping down as chairman of the U.S. Treasury’s Borrowing Advisory Committee after serving for about five years. “Anything that threatens its status as the global reserve currency, the safest and most liquid asset in the world, is bad for the American people, the dollar and the U.S. government.”
She explained that there has been chaos in the U.S. Treasury market, which "imposed additional costs to taxpayers." An extreme scenario where the Treasury stops paying its debts would "have a huge knock-on effect across the economy.”
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