Sintra, world's central bankers find ally in new Fed chief

Sintra, Portugal, hosted a rare moment of alignment among central bankers as many officials looked to Federal Reserve Chair Kevin Warsh as a potential ally. During the European Central Bank’s annual gathering in Sintra over three days, Warsh held private meetings with counterparts in Europe and beyond, including a lengthy lunch with ECB President Christine Lagarde at the cloistered courtyard of the former convent that hosts the event. Sources told Reuters that the talks stayed mostly high-level, with limited discussion of inflation trends, shadow-banking risks or international policy coordination. Officials interpreted Warsh’s outreach as a sign the Fed would remain engaged globally, easing fears of reduced participation tied to his administration. The stakes are high because the Fed is the main provider of dollar liquidity in stress periods and a major custodian of some countries’ gold reserves.