European Central Bankers Uneasy Over US Policy Shifts at Jackson Hole

European central bankers left the Jackson Hole gathering uneasy over US policy shifts, according to Reuters. They expressed concerns that established norms of international financial cooperation could face increasing strain due to uncertainty about the relationship between the United States and its allies.

Federal Reserve policymakers sought to reassure their European counterparts, emphasizing their commitment to existing international arrangements. However, Fed officials couldn't provide assurances that US President Donald Trump wouldn't introduce abrupt policy changes, given the separation between the central bank and the administration.

Recent US Treasury interventions, including a yen intervention on August 1, have heightened concerns among European policymakers. The Treasury's efforts to reduce longer-term US borrowing costs have raised questions about whether Washington may increasingly depart from established policy norms.