Fed's Kashkari says dollar could lose reserve currency status

ST. LOUIS (Reuters) - Minneapolis Federal Reserve President Neel Kashkari said on Friday “it’s possible” the dollar could lose its status as the world’s sole reserve currency during his lifetime.

If the euro or China’s yuan did become the world’s reserve currency, said the 42-year-old Kashkari, it could be a positive development for the United States, whose currency strengthens during global crises, hurting U.S. exports and manufacturing.

Kashkari, who spoke during a panel discussion in St. Louis, also said he is encouraged that inflation is creeping up toward the Fed’s 2 percent target. He added that he sees no possibility the U.S. central bank could overshoot on inflation.

Reporting Ann Saphir; Editing by Paul Simao