Winding Up is 9fin's weekly newsletter, incorporating summaries and commentary from our European distressed coverage for the past week. Find out more about what we do for distressed here.

So, the Fed held interest rates…

Why has the Fed gotten so hawkish on rate cuts?

“The big thing that changed was the inflation forecast. So, the inflation court forecast moved up several tenths at the end of the year… it’s probably going to take longer to get the confidence we need to begin to loosen policy,” Jerome Powell said at a press event on Wednesday (12 June).

The US economy is still running hot. With only a small month-to-month drop in the US’s CPI — 3.4% in the April numbers, down from 3.5% in March — and a strong jobs market with more than 272,000 jobs added in May (compared to a prediction of 180,000 according to a Bloomberg poll of economists).

Across the pond, Europe is in a slightly different place. The ECB elected to cut rates last week, albeit by a miniscule 25bps. While the path seems clear, the pace will likely be slower than most would like.