The rebound of labor productivity in the second quarter is another sign of why the economy will continue to be on strong footing even as the labor market cools. … READ MORE >
Economics
Fed holds rates steady as it sets up for September cut
We expect that the FOMC will reduce the policy rate by 25 basis points at its September meeting and then do so again in December. … READ MORE >
Job openings exceed forecasts as layoffs and quits reach multiyear lows
Job openings continued to point to strong labor demand, staying above forecast at 8.18 million in June. May’s number was also revised up to 8.23 million. … READ MORE >
U.S. July employment report to show a gain of 200,000 jobs
The second, and more important, element of the jobs report will be the direction of the unemployment rate, which has been rising as more people, lured by rising wages, enter the workforce. … READ MORE >
PCE inflation continues to ease in June as income and spending gain
Top-line inflation in the personal consumption expenditures index increased in June by 0.1% and by 2.5% on a year-ago basis. … READ MORE >
American economy grew by 2.8% in second quarter, exceeding forecasts
A strong labor market, rising real wages and a 1% increase in disposable income bolstered household spending, which advanced by a sustainable 2.3%. … READ MORE >
Bank of Canada reduces rate to 4.5 per cent amid disinflation
With widespread disinflation and rising unemployment, our estimates show that the Bank of Canada’s policy rate is still a percentage point too high. … READ MORE >
GDP preview: U.S. top-line growth to show solid increase
The Fed will maintain its policy rate in a range between 5.25% and 5.5% when it meets at the end of July. But we anticipate a change in the committee’s policy statement that will signal a rate cut is on the table in September. … READ MORE >
Digital transformation and Canada’s public sector
The digital infrastructure in Canada’s public sector needs a serious overhaul. Significant investments are needed to move toward paperless systems, online government services, cloud-based solutions and improved cybersecurity. … READ MORE >
Canada’s CPI in June shows disinflation and suggests rate cut
While inflation will continue to decrease, price levels are much higher than a few years ago, and that is something that can only get more palatable with higher income levels. … READ MORE >