[European Officials Discuss Pooling Dollars to Reduce Dependence on the Federal Reserve]
On November 14, European financial stability officials are discussing whether to create an alternative funding support mechanism to the Federal Reserve, pooling dollars held by central banks outside the United States. The Federal Reserve's existing mechanism provides dollar loans to other central banks, ensuring global financial stability during periods of market stress. However, several European central bank and regulatory officials are concerned that these mechanisms could be 'weaponized' by the Trump administration. Although related concerns increased in April, they were subsequently alleviated following assurances from the Federal Reserve. Officials pointed out that pooling dollars faces practical challenges and may be difficult to achieve. A White House spokesperson stated that Trump has repeatedly reaffirmed his commitment to maintaining the strength and influence of the dollar.