Exclusive: Some European officials weigh if they can rely on Fed for dollars under Trump
Portfolio Pulse from
Some European central banking officials are privately discussing potential risks to US Federal Reserve dollar funding backstops, triggered by uncertainties surrounding Trump administration policies. While they do not expect actual disruption, they are conducting informal risk assessments about potential future scenarios where US dollar support might be compromised.
March 22, 2025 | 9:30 am
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Discussions about potential Fed dollar backstop reliability could introduce marginal uncertainty into dollar-denominated assets and funding mechanisms.
While no immediate disruption is expected, the mere discussion of potential future scenarios introduces a layer of geopolitical uncertainty around US dollar funding mechanisms.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70