Euro Banks Fear Fallout from US Intervention

Central bankers from Europe have expressed concern about their relationship with Washington after an annual getaway. They left the Jackson Hole Economic Symposium far from reassured that norms in global cooperation remain intact, worried that more turmoil is ahead.

The Federal Reserve policymakers made a concerted effort to ease their counterparts' concerns by promising to honor all of their commitments. However, they were unable to guarantee against sudden policy shifts by President Donald Trump due to the separation between the central bank and the administration.

Recent U.S. Treasury interventions, including the August 1 yen transaction, have been particularly concerning for European officials. They were especially annoyed that the U.S. did not give them a customary heads-up before selling euros as part of the transaction.