Lazard CEO Ken Jacobs says he is concerned US isolationism could undermine the dollar's status as the world's reserve currency
- "To the extent that we have unilateral foreign policy and unilateral trade policy, we're sort of tempting the world to find an alternative"
Jacobs in a Bloomberg Television interview
Adds:
- Threats to that status are still far off
- currencies in Europe and China are unlikely replacements
- "there's enough technology out in the world today with cryptocurrency and changes going on that you can imagine, if you let your mind wander a little bit, that something becomes an alternative in the future"
On the economy:
- optimistic tone about the global economy
- there are long-term risks to the U.S., including failure to agree on immigration reform needed to boost future economic growth
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Background:
- USD has been the international currency of choice for more than half a century
- keeps a lid on borrowing costs in America
- Helps fund the US budget deficit as trading partners place their dollars in Treasuries