The Federal Reserve on Wednesday reduced its policy rate by 50 basis points to a range between 4.75% and 5% to protect full employment and preserve the soft landing in the economy. … READ MORE >
Economics
Canada’s consumer price index hits 2 per cent target
The Bank of Canada will need to continue rate cuts amid disinflation as well as rising unemployment and sluggish growth. … READ MORE >
U.S. retail sales and industrial production beat expectations
The data should temper the market’s concern about growth that has triggered calls for a 50 basis-point cut in the Federal Reserve’s policy rate at its meeting this week. … READ MORE >
Real federal funds rate illustrates that Fed policy is restrictive
With underlying inflation having fallen to between 2% and 2.5%, and the federal funds rate standing at 5.5%, capital investment has become prohibitively expensive for many businesses. … READ MORE >
Consumer sentiment rises on improved outlook for inflation and spending
The University of Michigan consumer sentiment index rose to 69 in the first half of September, up from 67.9 earlier. … READ MORE >
Immigration and the rebalancing of the Canadian economy
Canada’s shifting immigration policies highlight the delicate balance between addressing short-term economic concerns and safeguarding long-term growth. … READ MORE >
Producer inflation and initial jobless claims stabilize further
While the producer price index came out slightly higher than forecasted at 0.3% on the month and 1.7% on a year-ago basis, it remained on a moderating trend with July’s number being revised down. … READ MORE >
FOMC preview: Why the Fed’s pivot to lower rates matters
The Fed’s policy decision next week will put forward major changes to its outlook, including the dot plot, the Summary of Economic Projections and the language within the statement around economic conditions. … READ MORE >
U.S. August CPI: Further signs of moderation as energy prices decline
Inflation inside the consumer price index continued to moderate in August as the top-line figure increased by 0.2% on the month and by 2.5% on a year-ago basis. … READ MORE >
Financial markets update: Front-running the Fed’s first cut, and our new call on rates
We are updating our year-end rate call to 3.7% on the 10-year yield with risk of a move lower as growth, inflation and hiring cool. … READ MORE >