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Europe Explores Dollar Pooling to Reduce Fed Dependence

11/14/2025

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Story summary
  • European financial stability officials discuss pooling dollars held by non-U.S. central banks as an alternative to Federal Reserve backstops to curb reliance on the United States amid concerns about U.S. President Donald Trump’s weaponization of the Fed.
  • Initial analyses show logistical and political challenges.
  • The plan could aid stability.
  • Discussions continue among European officials about Fed leadership as dollar liquidity concerns persist.