European Capital Partners - No easy decision Discover this fund | European Capital Partners
Asset management and fund structuring boutique

No easy decision

Aug 24, 2022

While markets ponder whether Powell’s stance at Jackson Hole will be more hawkish or dovish, we find it useful to look at the broader picture on inflation. While inflation is certainly omni-present and the Fed will continue to fight it, there are also some early signs of relief. Several examples we can think of: agricultural prices have been falling significantly over the last weeks and are now back to the levels before the Ukrainian war. The strong USD is disinflationary for the US economy and worldwide business activity is slowing. Inventories of unsold houses are increasing in the US. It will certainly not be an easy decision for the Fed on what direction lies ahead in terms of monetary policy.

Return to overview