McDowell Quoted in Fortune Article on the Ties Between Military and Economic Strength

August 11, 2026

Fortune

Daniel McDowell

Political Science Department

Moynihan Institute of Global Affairs

Defense & Security

Economic Policy

Federal Government

International Affairs

United States

Fortune

Daniel McDowell

Jamie Dimon warned that the U.S. could lose the dollar's reserve currency status if it no longer has the world's strongest military and economy. Experts note that while economic strength remains the primary driver of dollar dominance, a weakened military could still erode confidence among allies and investors, though a lack of serious rivals would likely prevent the dollar from being fully displaced.

While it might initially seem like the armed forces have nothing to do with the greenback, American military and economic might are “tied up inextricably together with the dollar,” says Daniel McDowell, Maxwell Advisory Board Professor of International Affairs.

“He’s [Jamie Dimon] more or less saying that a weak military is a sign of a weak economy, and you would expect that the currency would kind of follow suit,” McDowell says. “If you think of the economy as being the underlying foundation of dollar dominance, the military is the icing on the cake.”

“A strong military makes a currency more appealing because it’s a signal to foreign investors that their assets are safe,” says McDowell. “It matters because a strong defense projects security of assets in a way that is distinct from the financial regulations in a country.”