Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBy Francesco Canepa and Balazs KoranyiThu, July 2, 2026 at 10:19 AM GMT+2 4 min readBy Francesco Canepa and Balazs KoranyiSINTRA, Portugal, July 2 (Reuters) - Central bank officials from around the world believe they may have found a new ally in Federal Reserve Chair Kevin Warsh, providing a rare point of alignment in an otherwise difficult relationship with Washington.Over three days at the European Central Bank's annual gathering in Sintra, Portugal, the new Fed chair held a series of private meetings with counterparts from Europe and beyond, including a lengthy lunch with ECB President Christine Lagarde in the cloistered courtyard of the former convent that hosts the conference.The conversations remained largely high-level, barely touching on issues such as inflation trends, shadow-banking risks or international policy coordination, sources familiar with the discussions told Reuters.But officials interpreted Warsh's outreach as a sign the Fed would stay engaged on the global stage, easing fears of a retreat from the international forums that anchor central bank cooperation.That reassurance was significant. Some central bankers had privately worried that a Fed led by a Trump appointee could prove more susceptible to White House pressure on interest rates or less committed to the international coordination that has long been a pillar of global monetary policy.WHY THE STAKES ARE HIGHThe Federal Reserve remains the ultimate provider of dollar liquidity in times of financial stress and, for some countries, the custodian of a substantial share of their gold reserves.It is also the most influential voice in global debates on monetary policy and financial regulation.Against that backdrop, policymakers arrived in Sintra keen to gauge whether the close working relationships many had enjoyed with former Fed Chair Jerome Powell would survive the transition.Several central bankers who have known Warsh since his time as a Fed governor between 2006 and 2011, or through his later involvement in the Group of Thirty consultative body, said they recognised the same policymaker they had dealt with for years.Others cautioned it was too soon to judge how he would perform once in office as he navigates the competing demands of preserving his credibility and managing pressure from the White House.AIR KISSES AND FRENCH CONVERSATIONSWarsh's reception was notable because many attendees had previously closed ranks around Powell during his prolonged clash with Trump, with a group of current and former central bankers publicly backing his independence and participants at last year's Sintra conference giving him a standing ovation.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info