The Federal Reserve reduced its policy rate by 25 basis points to a range between 4.25% and 4.5% at its meeting on Wednesday. … READ MORE >
Economics
Housing starts fall below estimates as permits rebound
The recent levels of starts and permits do not suggest enough future supply to meet the growing demand of American households to keep home prices under control. … READ MORE >
Morning market minute: What the Treasury yield curve is saying about the economy
Normally, yields would be expected to fall at a time when the Fed is cutting rates. But uncertainty over the economy and the probability of inflation’s decline stalling at 2.6% to 2.8% have helped push up yields. … READ MORE >
Rising demand helps U.S. retail sales top forecasts
Retail sales topped forecasts in November, growing at a robust pace for the third month in a row. … READ MORE >
Inflation risk premium suggests higher yields ahead
Should the inflation risk premium continue to rise, investors should anticipate that longer-term Treasury yields will move higher in tandem. … READ MORE >
Resignation of Canada’s finance minister before release of fall economic statement adds to uncertainty
Chrystia Freeland’s resignation as Canada’s finance minister highlights increasing political uncertainty as financial challenges loom in 2025. … READ MORE >
Morning market minute: The Fed’s terminal rate estimate needs to be lifted
We expect that the Federal Reserve will lift its estimate of the terminal rate to 3% this week. … READ MORE >
American household net worth sets record, bringing debt-to-asset ratio to 50-year low
The primary driver of this increase was rising equity prices, which added $2.8 trillion, marking the fourth consecutive quarter of significant growth. … READ MORE >
FOMC preview: A rate cut, followed by a prudent pause
We expect the Federal Reserve to reduce its policy rate by 25 basis points to a range between 4.25% and 4.5% at the Federal Open Market Committee’s meeting on Dec. 18. … READ MORE >
Bank of Canada cuts interest rate to 3.25% as focus shifts to gap with U.S.
The Bank of Canada lowered its interest rate to 3.25 per cent — an overdue move out of restrictive territory given that inflation has largely been tamed. Expect more rate cuts in early 2025 to get the economy onto an expansionary trajectory. The policy rate should come down to 2.75 … … READ MORE >