It would not be surprising to see market players assume that the de-facto inflation target is moving higher, toward 3%. … READ MORE >
Economics
Bank of Canada cuts interest rate to 2.5% amid economic, labour challenges
The Bank of Canada cut its key interest rate to 2.5 per cent as a slowing economy and rising unemployment likely contributed to the unexpected policy action. … READ MORE >
Market Minute: Do falling heavy truck sales indicate recession?
Since 1979, a collapse in sales of heavy trucks has coincided with recessions. But recent history tells a more nuanced story. … READ MORE >
Market Minute: Temporary relief for 30-year yields?
Yields have been rising as investors question the sustainability of higher government spending and the willingness of central banks to keep inflation expectations in check … READ MORE >
Market Minute: Low rates, liquidity and leverage
On Wall Street, low rates, liquidity and leverage are the holy trinity of new finance. … READ MORE >
Market Minute: Fed to cut rates and signal more easing
We expect the FOMC to cut the federal funds policy rate by 25 basis points to a range of 4% to 4.25% at its meeting on Sept. 17. … READ MORE >
Stagflation is the story in August CPI as discretionary service prices surge
Demand for discretionary services remains stubbornly strong despite a slower pace of hiring and a softer pace of wage growth. … READ MORE >
Market Minute: Liquidity warning in the money markets
Money market funds have so far been willing to absorb the issuance of short-term Treasury bills. But how long can that condition hold? … READ MORE >
Inflation expectations and the credibility of Fed policy
Does the Fed have the credibility not only to cut its policy rate next week but also to reduce it further in the following months, to the long-run neutral rate of 3% without stoking inflation? … READ MORE >
BLS revisions show 911,000 fewer jobs created than estimated
Between April 2024 and March 2025, the economy generated 911,000 fewer jobs than initially estimated using survey-based data, according to the BLS. … READ MORE >