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Illustration: Sarah Grillo/Axios

Yale University senior fellow and former Morgan Stanley Asia chairman Stephen Roach is the latest to predict the end of the dollar's run as the world's dominant currency, telling MarketWatch in an interview Monday that his forecast for a sharp deterioration of the greenback could happen "sooner rather than later."

What he said: Roach predicts the dollar will soon decline by 35% against its major rivals. “This massive shift to fiscal stimulus is going to blow out the national savings rates and the current-account deficit,” he said, reiterating comments he made in a recent op-ed published by Bloomberg News on June 14.

  • In the Bloomberg piece, Roach argued the dollar's "downtrend could gather momentum in the years ahead, especially with the U.S. currently leading the charge in de-globalization and decoupling."
  • “In a COVID era everything unfolds at warp speed,” he told MarketWatch on Monday. He pointed to the contraction of the U.S. economy from an unemployment rate that was hovering around a 50-year low at around 3.5% in January to the highest unemployment rate on record in April.

The backdrop: Currency analysts and fund managers have been calling for the dollar to weaken materially for years, while top economists like former Bank of England governor Mark Carney have called for the world to diversify away from the greenback. But this hasn't yet happened to any meaningful degree.

Go deeper: Consumer price index falls for third straight month for first time in its history

Go deeper

2 hours ago - Politics & Policy

Inhofe loudly sets Trump straight on defense bill

Sen. Jim Inhofe speaks with reporters in the Capitol last month. Photo: Samuel Corum/Getty Images

Senator Jim Inhofe told President Trump today he'll likely fail to get two big wishes in pending defense spending legislation, bellowing into his cellphone: "This is the only chance to get our bill passed," a source who overheard part of their conversation tells Axios.

Why it matters: Republicans are ready to test whether Trump's threats of vetoing the bill, which has passed every year for more than half a century, are empty.

Conspiracy theories blow back on Trump's White House

Sidney Powell. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

President Trump has rarely met a conspiracy theory he doesn't like, but he and other Republicans now worry the wild tales told by lawyers Sidney Powell and Lin Wood may cost them in Georgia's Senate special elections.

Why it matters: The two are telling Georgians not to vote for Republicans David Perdue and Kelly Loeffler because of a bizarre, baseless and potentially self-defeating theory: It's not worth voting because the Chinese Communist Party has rigged the voting machines.

2 hours ago - Politics & Policy

Bolton lauds Barr for standing up to Trump

John Bolton. Photo: Jabin Botsford/The Washington Post via Getty Images

John Bolton says Attorney General Bill Barr has done more to undercut President Trump's baseless assertions about Democrats stealing the election than most Senate Republicans by saying publicly that the Justice Department has yet to see widespread fraud that could change the election's outcome.

What he's saying: “He stood up and did the right thing," Bolton said in a Wednesday phone interview.