Tuesday, July 1, 2025

Latest

European Banks Worry About US Dollar Support Under Trump

European central bankers are quietly asking a question they never thought they’d need to consider: Can they still count on the US Federal Reserve for emergency dollar funding if markets crash?

According to Reuters, several European banking officials have been holding behind-the-scenes talks about this possibility, reflecting new uncertainties in the traditionally rock-solid financial relationship between the US and Europe.

“There’s no good substitute to the Fed,” one source told Reuters, highlighting just how critical US dollar access is for European financial stability.

The conversations stem from concerns about the Trump administration’s “America First” approach and its potential impacts on international financial cooperation. While officials think it’s still unlikely the Fed would actually cut off dollar supply during a crisis, the fact they’re even discussing it shows how much trust has eroded.

About 17% of European banks’ funding comes in dollars, and during past financial storms, the Fed’s emergency swap lines have been a crucial lifeline.

One official described the discussions as examining what happens when “the US government might pressure the Fed to suspend the dollar backstops” — a scenario that would have been unthinkable in previous administrations.


Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Is Trump Moving Forward with Marijuana Rescheduling?

President Donald Trump reportedly pledged to advance marijuana rescheduling “soon” during a private meeting with...

Monday, June 16, 2025, 10:19:00 AM

17 States Sue Trump for Blocking $5 Billion in Electric Vehicle Charging Funds

17 states led by Washington, Colorado, and California have filed a lawsuit against the Trump...

Wednesday, May 14, 2025, 09:10:00 AM

Justice Department Disbands Cryptocurrency Enforcement Team

The US Justice Department has disbanded its cryptocurrency enforcement unit and directed prosecutors to limit...

Sunday, April 13, 2025, 09:35:00 AM

GOP Senators Break Ranks to Challenge Trump’s Canada Tariffs

The Senate voted 51-48 on Wednesday to curtail President Donald Trump’s authority to impose tariffs...

Friday, April 4, 2025, 11:16:00 AM

Senator Urges Democrats to Block Trump Nominees, Warns of A ‘Constitutional Crisis’

Democratic Senator Chris Murphy called on his party to block all presidential nominees until what...

Sunday, February 9, 2025, 01:35:00 PM