The Globe and Mail reports in its Wednesday, May 13, edition that Kevin Warsh is set to lead the U.S. Federal Reserve, aiming to reduce its political involvement. A Reuters dispatch to The Globe reports that many countries worry this will allow U.S. politicians to wield financial tools more aggressively. Mr. Warsh is expected to gain Senate approval before Jerome Powell's term ends on May 15. There are growing concerns in Europe and beyond about the administration's use of trade and military support to leverage political and financial concessions from both allies and adversaries. In finance, perceived threats to Fed independence have typically been linked to a possible rethink of the Fed's currency swap lines. Those lines have provided dollar liquidity backstops to allied economies for two decades. The fear is clear: If the Trump administration politicizes trade agreements and military alliances, central banks must prepare for a potential cut in Fed overseas dollar funding. Like tariffs, those lines could also serve as bargaining chips, and other G7 central banks need to factor that in. In Mr. Warsh's testimony he said, "The Fed will work with the Administration and with Congress."