Powell’s hawkish Jackson Hole message makes plain the costs ahead for taming US inflation

Posted On: 5th September 2022
Powell’s hawkish Jackson Hole message makes plain the costs ahead for taming US inflation

Federal Reserve Chair Jerome Powell forcefully rebutted the expectations of an early dovish monetary policy pivot, reminding markets that interest rates will continue to climb and remain elevated for some time in its “unconditional” pursuit of price stability.

In his much-anticipated remarks from the Fed’s annual Jackson Hole policy meeting, Powell said reducing inflation will create slower US growth and soften labour market conditions which will “bring some pain to households and businesses”. These future consequences for the US economy are the cost of taming 40-year high annual inflation, he said, adding: “Without price stability, the economy does not work for anyone.” Powell emphasised that he supported the Fed’s rationale, saying: “The historical record cautions strongly against prematurely loosening policy.

Read more

Posted By: Mark Fry

Posted On: 5th September 2022

Mark is the National Head of Advisory and Restructuring, based in our London office, and has specialised in business rescue and restructuring for over 25 years. Mark has played a key role in developing the firm’s domestic and international advisory offering which is now a key part of the business. Advisory services include business reviews, debt advisory, financial and commercial due diligence (including acquisition, vendor, pre deal review and completion assistance), business valuation, Mergers and Acquisition advice, litigation support, solvent reconstructions, optimised exit planning, financial restructuring, performance improvement advice, strategic planning and implementation support.

Mark has been involved in a number of high profile cases including the successful restructure and sale of a Championship football club, appointed to the Landlord Restructuring Committee of the UK’s largest care home provider, as well as working with private equity houses on reorganisations, operational and financial restructuring, valuation and optimised exit of portfolio investments.

He has also been actively involved in property for many years, dealing with both commercial and residential developments, in the UK and abroad. He currently holds directorship’s of domestic and foreign property companies.