The Economist said that Americans spend more using dollars in the services and goods sector. But at the international level, many are also aware of the decline in the use of the Dollar. But, for international transactions, the Dollar's role is still vital.

April's retail sales increased 0.4% compared to March. This is data captured in the goods and services sector. The figures are not adjusted for inflation because there is a tiny month-over-month increase, including in the services sector.

"We are at the tail end of the shift regarding spending. The narrative that people are going out to restaurants and traveling more is true. This is proven by the bulk of uses of Dollar which took place over the past 12 months," said economist Greg Daco to Yahoo Finance.

Daco also said that some economists were still curious about the impact of the travel season. He and several economists believe that prices remain high. However, the Dollar is starting to lose its dominance at the international level.

Fed is Missing Key Recession Risks but Comfortable with Rate Hikes if Needed

Talking about what happened at the US domestic level, the Federal Reserve's fundamental weakness has been identified. This weakness is about its tendency to look at its past policies. So this is what makes the inflation mess in the continued monetary policy showdown.

This Fed weakness now threatens to produce a hard economic landing. Meanwhile, this could harm the economy at the regional bank and commercial property level.

The Fed's monetary policy in 2021 is proof because its fear of inflation guided it. The Fed allowed the broad money supply to be staggered at a reasonably high level.

Meanwhile, the stimulus from Gross Domestic Product also caused the Fed to maintain an easy monetary policy. The combination of these policies will eventually cause economic overheating.

In other words, some economists try to explain the policies taken by the Fed by not paying real attention to the actual risk.The recession that could be faced is still not considered aggressive, even though the broad money supply is at a worrying rate.

Furthermore, Richmond Federal Reserve President, Thomas Barkin, said that the central bank's latest policy statement explains the rising interest rate, which goes even further. Richmond noted that this is needed to lower inflation in the US.

"I want to learn what will happen to these lagged effects from previous rate hikes. But the goal of the Fed is also to reduce inflation. If more increases are necessary, we are comfortable doing that," said Thomas Barkin to Bloomberg TV.

Economists are aware that the Importance of the Dollar is Declining, but the World Yet Finds a Currency to Replace

Even though the use of the Dollar in the domestic sector is still high, it is the primary concern at the international level. The deciding importance of the US dollar, especially in international trade as a reserve currency, has declined.

The de-dollarization trend is the diminishing influence of the USD. The loss of dominance of the US Dollar is due to more countries choosing to conduct all international transactions with their local currencies.

So this makes the USD start to lose power to hold a significant position and the role of the US Dollar in a downward trajectory. But according to American economists, the efforts made by countries to move away from the US Dollar will not always be successful.

The main reason is that countries have yet to find a currency that can replace or even compete with the power of the Dollar for transactions.

This was mentioned by the International Monetary Fund Managing Director, Kristalina Georgieva, who stated that activities had been rapidly moving away from the US Dollar. But for those who can compete in trade, there is still nothing that is genuinely effective.

The US Dollar's dominance has begun to be questioned along with the trend of global de-dollarization. Meanwhile, at the domestic level, the use of dollars is increasing for goods and services transactions.