Economic data on housing, manufacturing and jobs released on Thursday pointed to softer-than-expected economic activity in the second quarter. … READ MORE >
Economics
CPI resumes disinflationary trend in April amid weakened retail sales
Overall CPI inflation rose by 0.3% in April, while core inflation—which excludes food and energy—also rose by 0.3%. This helped bring the year-over-year headline inflation down to 3.4% and core inflation to 3.6%. … READ MORE >
Producer price offers mixed result ahead of CPI release
The producer price index increased by 0.5% in April, above estimates, as both goods and service prices accelerated, according to Bureau of Labor Statistics data released on Tuesday. … READ MORE >
Interest rate volatility: Why Fed policy guidance is less effective
The past year has had significant volatility in financial markets, with dramatic shifts in the 10-year yield and multiple resets in market expectations for interest rate paths. … READ MORE >
How Canada can improve its lagging productivity
Increasing investments in innovation and technology, as well as in the workforce, to harness the power of technology can help raise Canada’s productivity. … READ MORE >
Intervening in foreign exchange markets: The poverty of dollar devaluation
We think intervening to devalue the dollar would be folly. In the end, the result would be upward pressure on prices, reduced demand and, ultimately, a slowing economy. … READ MORE >
U.S. consumer sentiment plunges on rising inflation
Inflation expectations rose sharply to 3.5% from 3.2% for the next 12 months while longer-term expectations inched up to 3.1% from 3.0%. … READ MORE >
Canadian economy showed resilience in April, adding 90,400 jobs
While the stronger-than expected job report released on Friday speaks to the resilience of the Canadian economy, the long-term trend is an undeniable weakening in the job market. … READ MORE >
Initial jobless claims rise to the highest level since August
Our preferred metric of new claims—the 13-week moving average—rose slightly to 211,000, still below the pre-pandemic level. … READ MORE >
Senior Loan Officer Survey: Progress halts as inflation rebounds in Q1
Progress toward normalized lending practices generally halted in the first quarter as the Federal Reserve turned more hawkish amid the rebound in inflation, according to data in a Fed report announced on Monday. … READ MORE >