[The Trump Administration's Frequent Interventions in Financial Markets Raise Concerns at the European Central Bank About Its 'Clutches' Reaching the Federal Reserve] BlockBeats reports that on August 31, European Central Bank officials have grown increasingly worried about the U.S. government's frequent interventions in the foreign exchange and U.S. Treasury markets. According to informed sources, during last week's Jackson Hole Symposium, Federal Reserve officials sought to reassure their European counterparts, promising to continue adhering to existing international cooperation arrangements. However, due to the institutional independence between the Federal Reserve and the U.S. government, Fed officials could not guarantee that the Trump administration would not abruptly change its policies. European officials are particularly concerned about recent financial market operations by the U.S. Treasury Department. On August 1, the U.S. Treasury intervened in the foreign exchange market by selling euros and buying yen, which drew dissatisfaction from European counterparts as the U.S. failed to provide the customary advance notice of such actions. Additionally, U.S. Treasury Secretary Besent's recent expansion of long-term Treasury buyback operations has further raised concerns among European officials about the increasingly blurred boundaries between fiscal, exchange rate, and monetary policies. European officials have further warned that if the U.S. government continues to use financial instruments to achieve economic and trade objectives, markets may begin to question the Federal Reserve's policy independence and the stability of the dollar swap mechanism. They also fear that the U.S. government might exert further pressure on the Federal Reserve in the future, potentially pushing it to directly intervene in the U.S. Treasury market. Currently, there are no signs that the dollar swap arrangements will change. Newly appointed Federal Reserve Chair Kevin Warsh has recently been actively strengthening communication with European policymakers, and his performance in international financial cooperation has received relatively positive feedback from European officials. [Original Link]