Central Bankers in Sintra: Balancing Power Amid Global Monetary Challenges
At the central bank gathering in Sintra, officials addressed the future of monetary control facing political pressures and rising stablecoins. Concerns were raised over central bank independence and the role of the dollar. Debates around stablecoins' stability and their impact on monetary policy were also central to discussions.
During their annual Sintra meeting in Portugal, central bankers tackled significant challenges threatening their influence over the global monetary system, including escalating political pressures on the U.S. Federal Reserve and surging stablecoin popularity.
The conference revealed apprehensions over central bank independence, as evidenced by UBS Asset Management's survey, with two-thirds of reserve managers fearing the Federal Reserve's autonomy is jeopardized. Chairman Jerome Powell, nevertheless, reaffirmed the Fed's commitment to maintaining low inflation and full employment.
Concerns extended to stablecoins, whose market growth could destabilize traditional monetary frameworks, prompting leaders like ECB's Christine Lagarde to address their implications on global currency systems.
(With inputs from agencies.)
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