this that he regards fighting inflation is the main concern now? i hear they had been some debate, exactly what the federal reserve would do given this turmoil we re seeing in the banking sector. would there be a pause because back when fed chair powell was asked he did acknowledge they had considered policy, makers had considered pausing hiking rates but felt inflation was still a sufficient problem, a headwind for them that they wanted to proceed with the smaller than expected increase. i think what it does is underscore the challenge facing america central bank. on the money had, they are trying to fight inflation by raising interest rates but on the other hand they are trying to restore financial stability. right now that is a key priority. stability. right now that is a key riori . ~ ., ., , stability. right now that is a key riori .~ ., ., , . ., . ., priority. what now is the chance of some sort of priority. what now is the chance of some sort of contagion? priority. what no
what the hammock in the us banking sector means for the broader economy is to be seen but it s taking calculations about how america s fight against inflation maeve plouffe. economists at goldman sachs no longer expect the us federal reserve chair to raise interest rates at its meeting next week, saying policymakers won t want to undermine the efforts to restore financial stability by hiking rates just a few days later. the wall street investment bank had forecast a quarter point interest before this week. the argument for pausing, it is twofold. it would allow more time for financial stability to be restored, plus the event could very well exert downward pressure on prices if banks pull back on landing. we will get a clearer picture of inflation later this tuesday with the latest consumer price index reading. the federal hope the data is muted, otherwise theirjob of tackling inflation and ensuring financial stability while avoiding a recession will get that bit
restore financial stability right now, but when it comes to productivity and the longer term, the prospect of growth for the uk, if you are still going to make £30 billion in spending cuts, that could fall on childcare for example, childcare funding not being listed to meet inflation. that lands on working families, and it means that actually, if you are scrambling to pay for childcare, you may leave the workforce. already we have seen an exodus of people leaving the workforce. again, if you want to boost productivity, rating home so that you are not fine because your childcare provider has to impose fines because it can t survive, that s not going to boost productivity. racing home. so these tiny cuts could add up to a big picture of lower productivity in the future for the uk.- of lower productivity in the future for the uk. which will have implications future for the uk. which will have implications for - have implications for businesses as well, thank you. let s get some reac
on internal debates within the conservative party. earlier, the prime minister had come to the house of commons to witness her new chancellor, jeremy hunt, confirm most of her economic plans were being thrown out. all the prime minister could do was watch and listen as policy after policy was scrapped in an attempt to restore financial stability and the government s credibility. labour say the prime minister s apology won t undo the damage she s done. it s unlikely to be enough on its own to secure herfuture in office. jonathan blake, bbc news. we can now speak to mark davies, a uk political analyst who previously ran a strategic communications consultancy advising on reputation management through government and media relations. what did you make of her performance while she was being grilled by our political editor? ,