Europe Considers Shared Dollar Fund to Guard Against Fed Pressure
European financial leaders are exploring the creation of a pooled US dollar reserve fund to reduce reliance on the Federal Reserve during crises. Concerns have escalated amid fears that the TRUMP administration could politicize dollar swap lines, traditionally a lifeline for central banks. The proposed fund would serve as a contingency mechanism, bypassing potential Fed restrictions.
Officials are also evaluating alternative dollar sourcing strategies, including partnerships with non-US entities in Asia and the Middle East. Stress tests are planned to assess systemic resilience against dollar liquidity shocks. These measures follow recent US tariff impositions on EU allies, highlighting geopolitical tensions in monetary policy.