Ukraine Invasion May Speed Up China’s Plan to Insulate Against US Dollar: Fed Chair

U.S. Federal Reserve Chair Jerome Powell testifies at a Senate Banking, Housing, and Urban Affairs Committee hearing on Capitol Hill in Washington on March 3, 2022. Tom Williams-Pool/Getty Images

China could very well accelerate its plans to come up with alternatives to the world’s dollar-dominated international payments system, after seeing Russia becoming isolated economically, according to Federal Reserve Chairman Jerome Powell.

Powell made the assessment on March 3 during a Senate Banking Committee hearing, when he was questioned by Sen. Jack Reed (D-R.I.), who is the chairman of the Senate Armed Services Committee.