FRANKFURT, Germany – Incoming U.S. Federal Reserve Chair Kevin Warsh’s suggestion that independence may not extend fully to the Fed’s crisis-fighting role abroad has unsettled central banking peers, who fear any reduction in its global footprint could risk market stability.

With the dollar by far the world’s most used currency, the U.S. central bank plays a pivotal role in stabilizing financial markets during periods of stress. It has expanded its crisis-fighting tools over time to keep funding flowing.

But Warsh — U.S. President Donald Trump’s pick for the job — raised eyebrows by suggesting that outside monetary policy, including in international ​finance, the Fed needs to work closely with the presidential administration and Congress.

Adblock test (Why?)