Reuters carry the report on discussions between European central banking and supervisory officers questioning whether or not they can nonetheless depend on the U.S. Federal Reserve to supply greenback funding in instances of market stress
- Reuters cite “six individuals accustomed to the matter”
- sources instructed Reuters they contemplate it extremely unlikely the Fed wouldn’t honour its funding backstops — and the Fed has given no indicators to counsel that
- however, given the dismantling of long-standing U.S. coverage in a number of areas by Trump, the query is being raised over the likelihood the U.S. authorities may stress the Fed to droop the greenback backstops
The Federal Reserve offering USD funding in periods of economic stress is a keystone of economic stability.
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This text was written by Eamonn Sheridan at www.forexlive.com.
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