Some European central banking and supervisory officers are questioning whether or not they can nonetheless depend on the U.S. Federal Reserve to supply greenback funding in occasions of market stress, six individuals conversant in the matter stated, casting some doubt over what has been a bedrock of economic stability.
The sources advised Reuters they think about it extremely unlikely the Fed wouldn’t honour its funding backstops — and the U.S. central financial institution itself has given no alerts to recommend that.
However the European officers have held casual discussions about this risk – which Reuters is reporting for the primary time – as a result of their belief in the US authorities has been shaken by among the Trump administration’s insurance policies.
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