European Central Bankers Express Concern Over U.S. Financial Policy and Relations

European central bankers are concerned about increasing turbulence in their relationship with the United States following the annual Jackson Hole Economic Symposium. Sources familiar with the discussions stated that while Federal Reserve policymakers attempted to ease these concerns by promising to honor commitments, they could not guarantee against sudden policy shifts by President Donald Trump. European officials expressed particular frustration over a recent U.S. Treasury intervention to prop up the Japanese yen, noting that the U.S. did not provide the customary notification that euros were being sold as part of the transaction. One official described the lack of communication as infuriating and suggested the U.S. does whatever it wants. A U.S. official defended the move, stating it was intended to counter disorderly movements in the yen and support global financial stability without targeting any other entity. Additional concerns were raised regarding Treasury Secretary Scott Bessent's plan to increase buybacks of longer dated bonds. European bankers worry this indicates a willingness to take unusual measures to cap borrowing costs, which could lead to market upheaval. A U.S. official stated these buybacks are intended to provide liquidity and are not monetary policy. The European Central Bank and the Federal Reserve declined to comment on the matter.