European Central Bankers Fear Turbulence in US Relations

Europe's central bankers are leaving the Jackson Hole Economic Symposium with concerns about their relationship with Washington. Despite efforts by Federal Reserve policymakers to ease their counterparts' worries, officials say they remain uncertain about the future of global cooperation.

The Fed has promised to honor its commitments, but some worry that President Donald Trump could still implement sudden policy shifts. This concern is fueled by recent actions such as a large yen transaction in August, which was conducted without prior notice to European central banks. The U.S. Treasury Secretary reassured central banks that the move was 'just a reallocation of resources', but officials were annoyed at not being given a heads-up.

The use of unusual measures to cap borrowing costs is also causing concern among European central bankers. They worry that this could lead to further intervention and breaks with norms, which could have far-reaching consequences for global financial markets.