Labor demand continues to increase at a remarkably strong pace, which removes the prospect of a July rate hike and creates the sense that the Federal Reserve may fall further behind other central banks as they pivot to lower rates. … READ MORE >
Economics
FOMC preview: Dot plot to imply two rate cuts this year
We expect the Federal Open Market Committee to keep its policy rate unchanged between a rate of 5.25% and 5.5% at its meeting next week. … READ MORE >
The case for rate cuts: Read our chief economist’s op-ed in Barron’s
The recent rate cuts by the Bank of Canada and the European Central Bank are just the beginning of a global shift to growth-oriented monetary policies, RSM’s chief economist Joe Brusuelas wrote in Barron’s in April. … READ MORE >
Global central bank policy pivot continues as ECB cuts rate
The rate cuts in Europe and Canada are likely to be followed by the Bank of England in August and the Fed this fall. … READ MORE >
In long-awaited shift, Bank of Canada cuts its policy rate to 4.75%,
After years of raising interest rates and then keeping them elevated, the Bank of Canada dropped the policy rate by 25 basis points on Wednesday, signaling a new period of recovery and growth. … READ MORE >
Job openings fall to the lowest level since February 2021
The labor market continued to cool at an encouraging pace as elevated interest rates weighed further on overall demand. Job openings fell to 8.06 million in April from a downwardly revised 8.36 million in the previous month, according to data released by the Bureau of Labor Statistics on Tuesday. … READ MORE >
Bank of Canada preview: A rate cut is desperately needed
The Bank of Canada needs to announce rate cuts during its June 5 meeting to spur economic growth. Any further delay and the bank would risk making a policy error and undermining Canada’s growth outlook. … READ MORE >
Manufacturing activity slows in May
Softer manufacturing sentiment in May is within our expectations as elevated interest rates continue to weigh on overall goods demand. … READ MORE >
Canada’s economy grew by 0.4%, bolstering case for rate cuts
The economy expanded by 0.4% in the first quarter after no change in the previous quarter, according to data released by Statistics Canada on Friday. … READ MORE >
Spending cools more than expected as Fed contemplates rate cuts
American consumers pulled back in April as a sign of elevated interest rates weighing further on overall demand as the pandemic fiscal supports wane. … READ MORE >