Some European officials weigh if they can rely on Fed for dollars under Trump

European officials are considering their reliance on the Federal Reserve for access to dollars during Trump’s presidency.

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  1. The uncertainty surrounding U.S. monetary policy under President Trump has raised significant concerns among European officials regarding their ability to rely on the Federal Reserve for access to dollars. With potential shifts in trade policies and a focus on domestic economic agendas, there is a growing dialogue about the implications for global liquidity and the euro’s role as an alternative reserve currency.

    European leaders may need to explore strengthening their own financial mechanisms and enhance coordination among EU member states to mitigate risks associated with dependence on the Fed. This could entail deepening the European Monetary Union or fostering stronger ties with other international financial institutions.

    In the face of these challenges, it’s essential for Europe to develop a more resilient economic framework that can withstand fluctuations in U.S. policies while ensuring stability and confidence in their currencies and financial systems.

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