Federal Reserve (Fed) Governor Christopher Waller has opined that US dollar may face some challenges to its dominance in the future while the policymakers are also attuned to the potential financial stability challenges that the current broad use of the US dollar can pose for financial systems in the United States and the rest of the world. He noted that past experiences show that foreign shocks can transmit to the United States when investors and governments seek a safe haven to protect the value of their assets in periods of stress. Such a "flight to the dollar" means that dollars are in especially high demand in funding markets around the globe during these episodes, as we saw during the Global Financial Crisis and the financial turmoil at the outset of the COVID-19 pandemic.