WASHINGTON — Global policy makers gathering in Washington last week breathed a collective sigh of relief that the US-centric economic order that prevailed for the past 80 years was not collapsing just yet despite Donald J. Trump’s inward-looking approach.

The Spring Meetings of the International Monetary Fund (IMF) and the World Bank were dominated by trade talks, which also brought some de-escalatory statements from Washington about its relations with China.

But some deeper questions hovered over central bankers and finance ministers after Mr. Trump’s attacks on international institutions and the US Federal Reserve: can we still count on the US dollar as the world’s safe haven and on the two lenders that have supported the international economic system since the end of World War II?

Conversations with dozens of policy makers from all over the world revealed generalized relief at Mr. Trump’s scaling back his threats to fire Fed Chair Jerome H. Powell, the guardian of the dollar’s international status whom he had previously described as a “major loser.”

And many also saw a silver lining in US Treasury Secretary Scott Bessent’s call to reshape the IMF and World Bank according to Mr. Trump’s priorities because it implied that the United States was not about to pull out of the two lenders that it helped create at the Bretton Woods conference of 1944.

“This week was one of cautious relief,” Austria’s central bank governor Robert Holzmann said. “There was a turn (in the US administration’s stance) but I fret this may not be the last. I keep my reservations.”

The politicization of the Fed and, to a lesser extent, the hollowing out of the IMF and World Bank are almost too much to fathom for most officials.

Deprived of a lender of last resort, some $25 trillion of bonds and loans issued abroad would be called into question.

NO ALTERNATIVE
At the heart of policy makers’ concerns is that there is no ready alternative to the United States as the world’s financial hegemon — a situation that economists know as the Kindleberger Trap after renowned historian Charles Kindleberger.

To be sure, the euro, a distant-second reserve currency, is gaining popularity in light of the European Union’s newly found status as an island of relative stability.

But policy makers who spoke to Reuters were adamant that the European single currency was not ready yet to dethrone the dollar and could at best hope to add a little to its 20% share of the world’s reserves.

Of the 20 countries that share the euro only Germany has the credit rating and the size that investors demand from a safe haven.

Some other members are highly indebted and prone to bouts of political and financial turmoil — most recently in France last year — which raise lingering questions about the bloc’s long-term viability.

And the euro zone’s geographical proximity to Russia — particularly the three Baltic countries that were once part of the Soviet Union — cast an even more sinister shadow.

With Japan now too small and China’s heavily managed currency in an even worse position, this left no alternative to the dollar system underpinned by the Fed and the two Bretton Woods institutions.

In fact, the IMF and the World Bank could scarcely survive if their largest shareholder, the United States, pulled out, officials said.

“The US is absolutely crucial for multilateral institutions,” Polish Finance Minister Andrzej Domanski told Reuters. “We’re happy they remain.”

Still, few expected to go back to the old status quo and thorny issues were likely to await, such as widespread dependence on US firms for a number of key services from credit cards to satellites.

But some observers argued that the market turmoil of the past few weeks, which saw US bonds, shares and the currency sell off sharply, might have been a shot in the arm as it forced a change of tack by the administration.

“When President Trump talked about firing Jay Powell, the fact that markets reacted so vigorously to that ended up being a disciplining reality just reminding the administration that, if you cross that line, it could have some very severe implications,” said Nathan Sheets, global chief economist at Citi. — Reuters

BUENOS AIRES — Argentines bid farewell to Pope Francis on Saturday, holding a massive open-air mass in front of the cathedral where he served as the archbishop of Buenos Aires before his papacy.

Giant screens and displays highlighted the figure of Jorge Mario Bergoglio, the son of Italian immigrants born in Buenos Aires in 1936 who made history by defending the poor as the first Latin American pope.

The historic Plaza de Mayo was filled with young people and families, communities to whom Pope Francis repeatedly extended encouraging messages.

“For a lot of us young people who were distant from the Church, Francis’ legacy brought us closer,” Daniela Wenceslao, 26, said.

“Today, Francis is the most important person in our country, and we want to pay this small tribute in his name.”

Earlier in the day, the Vatican hosted a massive funeral and humble burial for Pope Francis, who reigned for 12 years. Pope Francis died at the age of 88 after suffering a stroke on Monday.

In Buenos Aires, Jorge Garcia Cuerva, the current Archbishop of Buenos Aires, delivered a sermon to thousands of people holding photos of Francis, white flowers and Argentine flags.

“We still can’t fully understand or grasp his global leadership; we cry because we already miss him so much,” Cuerva said. “We cry for Francis, we do so from the bottom of our hearts, without shame.”

Following the sermon, a caravan began around the Plaza de Mayo as a “symbolic embrace” for Francis’ legacy, as well as a pilgrimage to impoverished areas of the city.

“(Francis) is resting, but there’s a pain in my heart. But his presence is here, right now, it’s as if his spirit is still here,” said Ruth Lopez, 58, a caretaker for the elderly.

Later in the day, the pope’s beloved San Lorenzo de Almagro soccer club paid homage to their holiest fan in their first game after the pontiff died. Players wore shirts with the pope’s picture and the stadium was filled with pictures, flags and even a life-sized statue of the pope.

The office of libertarian President Javier Milei praised Pope Francis’ emphasis on interfaith dialogue, building spirituality among young people, and his cost-cutting initiatives at the Vatican.

Mr. Milei himself led the Argentine delegation to the Vatican during Francis’ funeral.

During Francis’ illness there was an outpouring of support throughout the country and widespread sorrow after his death. But there was also regret among many that Francis never returned to Argentina as pope. — Reuters

VANCOUVER — A number of people were killed and multiple others were injured in Vancouver after a vehicle drove into a crowd at a Filipino street festival in the western Canadian city, police said on Saturday.

Police said they were investigating a mass casualty incident and had arrested a 30-year-old Vancouver man at the scene, but did not immediately give the number of fatalities or injured, saying they would have more information in the morning.

“At this time, we are confident that this incident was not an act of terrorism,” Vancouver police said in an X post.

At a midnight press conference, police said that the suspect was “known” to them but did not elaborate. The man was initially taken into custody by people at the scene.

The incident happened shortly after 8 p.m. (0300 GMT) near East 41^st Avenue and Fraser Street, where the Lapu Lapu Day Block Party, celebrating a Philippine national hero, was taking place.

Canadian Prime Minister Mark Carney said on X: “I am devastated to hear about the horrific events at the Lapu Lapu festival in Vancouver earlier this evening.”

Vancouver’s Mayor Ken Sim and British Columbia Premier David Eby posted similar comments on X.

One witness told CTV News he saw a black vehicle driving erratically in the area of the festival just before the crowd was struck.

Jagmeet Singh, leader of Canada’s New Democratic Party, was among the attendees at the event, but left minutes before the vehicle arrived, CTV news said. 

“This is so horrific, I don’t even know what to say,” CTV quoted Singh as saying. “I was just there, and I just imagine the faces of the kids that I saw smiling and dancing.”

Canada’s federal election takes place on Monday.

The Vancouver Sun said thousands of people had been in the area.

“I didn’t get to see the driver, all I heard was an engine rev,” Yoseb Vardeh, co-owner of food truck Bao Buns, said in an interview with Postmedia.

“I got outside my food truck, I looked down the road and there’s just bodies everywhere,” said Vardeh, as his voice broke. “He went through the whole block, he went straight down the middle.” — Reuters