Key facts
- European central bankers expressed worries about the strain on global cooperation norms.
- They anticipate further turbulence in the relationship with Washington.
- Recent U.S. Treasury actions to support the Japanese yen and lower borrowing costs were a specific concern.
- These actions are seen as foreshadowing more interventions and breaks with established norms.
European central bankers are departing their annual meeting with U.S. counterparts concerned that established norms of global cooperation are weakening. Sources familiar with the discussions indicated that participants anticipate further turbulence in the relationship between Europe and Washington.
A key point of concern cited was the recent intervention by the U.S. Treasury to support the Japanese yen and reduce borrowing costs. This action is viewed by some as a precursor to more frequent interventions and a departure from previously accepted international financial practices.