European financial stability officials are debating whether to create an alternative to Federal Reserve funding backstops by pooling dollars held by non-US central banks, Reuters reports, citing five officials familiar with the matter.
- Move aimed at reducing reliance on the US under the Trump administration
- Ongoing talks said to be at staff rather than top European Central Bank policymaker level and involve central banks in the euro zone and outside the bloc
- Kush Desai, a White House spokesman, told Reuters that Trump has “repeatedly affirmed his commitment to maintaining the strength and power” of the dollar
- ECB and Fed ...