Jackson Hole Unease: European Central Bankers Worry About US Policy Shifts

European central bankers left the Jackson Hole gathering of global policymakers uneasy about potential policy shifts from the United States. The Fed sought to reassure its European counterparts, emphasizing its commitment to existing international arrangements.

However, officials couldn't provide assurances that U.S. President Donald Trump would not introduce abrupt changes. Recent Treasury interventions have heightened concerns among European policymakers, particularly over the Treasury's support for the Japanese yen and efforts to reduce long-term U.S. borrowing costs.

The August 1 yen intervention was a source of irritation due to the lack of advance notice about selling euros as part of the transaction. A U.S. official said the intervention aimed to counter disorderly movements in the yen and support stability in global financial markets.