Several European central banking and supervisory officials are expressing concerns regarding their reliance on the U.S. Federal Reserve for dollar funding during market turbulence, as reported by Reuters. While it is deemed unlikely that the Fed would not adhere to its funding commitments, there are doubts arising due to the changing policies of the Trump administration, which have eroded trust in the U.S. government. These officials have informally contemplated the possibility of the U.S. government pressuring the Fed to halt dollar backstops, prompting discussions on finding alternative solutions. Despite these discussions, it is evident that the Fed remains indispensable as a financial stability backstop, according to sources familiar with the matter who spoke on condition of anonymity. Both the ECB and the Fed have refrained from commenting on these discussions, stressing the independence of the Fed and its commitment to supporting backstop measures. The sources clarified that these conversations were not influenced by signals from the Fed or ECB leadership but were driven by concerns over potential risks in the financial system.