Everything on Financial Stability

The Federal Reserve's swap lines function as global deposit insurance, preventing currency crises. Weaponizing this role risks destabilizing the international financial system and accelerating the decline of the dollar's reserve status.

Impact: Preserving the neutrality of the Fed's global lender-of-last-resort function is critical for maintaining global economic confidence and US financial hegemony.

— from Geoeconomics: The Return of Economic Statecraft · bto – der Ökonomie-Podcast von Dr. Daniel Stelter· Jan 28, 2026