Authored by Mike Shedlock via MishTalk.com,
Reuters reports Some European officials weigh if they can rely on Fed for dollars under Trump
Some European central banking and supervisory officials are questioning whether they can still rely on the U.S. Federal Reserve to provide dollar funding in times of market stress, six people familiar with the matter said, casting some doubt over what has been a bedrock of financial stability.
But the European officials have held informal discussions about European Officials Now Worry About Reliance Of Dollar Funding By The Fed, Can the EU rely on dollar funding by the Fed with Trump in play? Dollar Funding Under Trump Reuters reports Some European officials weigh if they can rely on Fed for dollars under Trump Some European central banking and supervisory officials are questioning whether they can still rely on the U.S. Federal Reserve to provide dollar funding in times of market stress, six people familiar with the matter said, casting some doubt over what has been a bedrock of financial stability. But the European officials have held informal discussions about this possibility – which Reuters is reporting for the first time – because their trust in the United States government has been shaken by some of the Trump administration’s policies.