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Jackson Hole, Credit Suisse, and the bears are fighting back.This week's Jackson Hole symposium offers Fed Chair Jay Powell the chance to re [View in browser]( [Bloomberg]( Jackson Hole, Credit Suisse, and the bears are fighting back. Jackson Hole This week's Jackson Hole symposium offers Fed Chair Jay Powell the chance to [reinforce]( the central bank's hawkish message. Powell speaks at the conference at 10am on Friday and he is expected to underline the Fed's resolve in combating inflation. So far the market has been anticipating a more hawkish bias, with US 10-year yields touching the [3% level]( again, from as low as almost 2.5% at the beginning of August. Higher yields are giving the dollar a renewed lease of life, putting an end to the nascent yen rally and bringing [140 back into play]( for USD/JPY. Reckoning Credit Suisse's decades dueling the titans of [Wall Street]( for a place among the investment bank elite are potentially over. In the wake of Archegos and Greensill, its leaders want the firm to be an asset gatherer for the world's rich and a Swiss bank serving the nation's corporate champions. Conversations with about a dozen Credit Suisse dealmakers, traders, financiers and wealth advisers, who asked to remain anonymous, depict an investment bank braced for [a reckoning](. As much as two-thirds of the unit could eventually be [on the block]( in the most extreme case, senior figures say. Bears fight back There’s a sober warning from Wall Street and beyond: The Federal Reserve is still on a collision course with financial markets. Stocks and bonds are set to tumble once more even though inflation has likely peaked, according to the latest [MLIV Pulse survey](, as rate hikes reawaken the great 2022 selloff. Ahead of the Jackson Hole symposium later this week, 68% of respondents see the most destabilizing era of price pressures in decades eroding corporate margins and sending equities lower. Markets fall Stocks in Europe [retreated Monday]( along with US equity futures as the Federal Reserve’s commitment to tighter monetary settings and worries about the effect on economic growth weigh on investor sentiment. Ten-year Treasury yields were little changed while two-year yields rose about five basis points, deepening the yield-curve inversion that’s seen as a harbinger of a recession. The dollar spot index climbed to a five-week high. Coming up... Data today include the US July Chicago Fed’s national activity index, which will cast further light on the pace of growth. The US is also selling $54 billion in 13-week and $42 billion 26-week bills. Elsewhere, Argentina will give a reading on July trade data and Peru delivers second-quarter GDP. Earnings include Allego, Zoom, Dlocal, Afya, Palo Alto Networks, FinVolution and Dada Nexus. What we've been reading Here's what caught our eye over the weekend. - Tesla’s full [self-driving]( system will cost $15,000. - Russia probes [a car bomb]( that killed Putin ideologist’s daughter. - Fixes to [Covid relief]( got money to more small businesses. - US begins [drills with South Korea](. - “[House of the Dragon](” debut crashes HBO Max for thousands. - Penn to buy rest of [Barstool Sports](. - Your [steak is getting cheaper]( at the supermarket. And finally, here’s what Joe’s interested in this morning In the 2010s, austerity policies helped contribute to a slow pace of growth in the wake of the Financial Crisis. Whether it was European governments dealing with the debt crisis or the US sequester, there seems to be a wide acceptance that premature or unnecessary "belt tightening" hurt the recovery. From a macro theme, this weak demand, and all of the resultant slack was basically the story of the decade. In 2020 the world is experiencing austerity again, but the impulse comes from a totally different place. In China's Sichuan province, [all aluminum production]( has been halted due to extreme weather and a shortage of power. Meanwhile, everybody knows about the energy problem in Europe. It's getting even worse today. Check out the latest update of natural gas prices in the Netherlands. And here's a chart of power prices in France. In the 2010s we saw an insufficient amount of money being pumped into the system, causing a curb on growth. In the 2020s, it's real resource austerity creating the growth brake. As long as commodity markets remain tightly supplied and fragile (due to a lack of investment and extreme weather events) they will throttle industrial capacity and sap away the buying power of households. The fight against austerity today isn't about spending more money per se, but in easing these conditions and facilitating an increase in energy supply. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwart]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Five Things - Americas newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](