European central banking officials are increasingly questioning their reliance on the U.S. Federal Reserve for dollar funding during periods of market stress. This concern arises amid aggressive U.S. policy decisions and systemic shifts that have led some officials to doubt the Fed's ability to provide necessary liquidity. Reports indicate that this uncertainty could impact the traditional role of the U.S. dollar as a global reserve currency, prompting discussions among European officials about potentially increasing euro reserve holdings. The situation reflects broader concerns about U.S. political dynamics, particularly under the Trump administration, which some believe may undermine the safe-haven status of U.S. Treasuries.
US political brinkmanship undermines Treasuries' safe-haven status https://t.co/KQnEzBcRxc via @Reuters https://t.co/tJ8yQEWTlm
Transatlantic rift might spur euro reserve holdings https://t.co/dxoO2DKwhg via @Reuters https://t.co/zLq3w41acG
NEW: Bank of England rushes to hide banking crisis; EU ditching the dollar? https://t.co/niqt8wRuzT