For nearly a quarter century, Canada’s capital gains tax rate has remained largely the same, at 50 per cent. But that changed this year when the federal government, in its current budget, called for the new inclusion rate to be set at 66.7 per cent. While the move might help the government boost ... READ MORE >
Economics
Demand for business spending on equipment falls in July
Business spending on durable equipment did not start the third quarter on a strong note. Core capital goods orders, which exclude aircraft and defense spending and are a better proxy for short-term business investment in new equipment, decline by 0.1% in July. Shipments of core capital goods fell even ... READ MORE >
Canada’s rail strike disrupts supply chains
Canada’s rail work stoppage could disrupt Canada’s supply chains, costing billions of dollars and tens of thousands of jobs. Supply chain snarl could also put upward pressures on prices just as inflation returns to 2.5%. But on a broader scale, the impact would be minimal and short-lived if workers ... READ MORE >
Powell at Jackson Hole: Policy pivot signals the start of rate cuts
Federal Reserve Chairman Jerome Powell’s speech at the Kansas City Fed symposium on monetary policy in Jackson Hole, Wyo., showed that the central bank is preparing for a policy pivot toward a rate cut designed to protect and preserve the economic soft landing achieved by the Fed. In his statement, ... READ MORE >
Jobless claims stabilize amid concerns over weak job gains
With most of the seasonal fluctuations in the weekly jobs data having eased, new filings for unemployment benefits have returned to a healthier level over the past three weeks. Initial claims last week rose by only 4,000, to 232,000, on a seasonally adjusted basis, according to government data released ... READ MORE >
The Fed nears a pivot: A webinar from RSM US and the U.S. Chamber of Commerce
With inflation easing and the labor market cooling, the Federal Reserve has signaled that it is poised to cut interest rates. But for how long, and what will the economy look like if the Fed follows through? Join RSM US Chief Economist Joe Brusuelas and U.S. Chamber of Commerce Executive Vice President ... READ MORE >
The TIPS bond market sees 2.1% inflation over the next 10 years
As inflation moves back toward the Federal Reserve’s 2% target, investors and firm managers will be looking at market-based measures of inflation expectations to make their decisions. Treasury Inflation-Protected Securities, or TIPS, are one of those measures used to make such ... READ MORE >
Canada’s inflation fell to 2.5 per cent, solidifying case for rate cut
Canada’s consumer price index fell to 2.5 per cent in July, the lowest level since March 2021, solidifying the case for the Bank of Canada to cut its policy rate this month. The disinflation was broad-based and included components from food to recreation and, most notably, shelter. All measures of ... READ MORE >
Seven reasons why the U.S. economy will not fall into recession
Market panics are a normal part of American business cycles. The recent scare, driven by a combination of slower hiring and the partial unwinding of the global carry trade, stands in contrast with resilient household spending, a fiscal tailwind and solid, if unspectacular, fixed business investment in the ... READ MORE >
Fed loan officer survey shows CRE standards continue to tighten
Recent trends in commercial real estate and commercial and industrial loans continued in a status-quo fashion in the second quarter of 2024, according to the latest Senior Loan Officer Opinion Survey results released last week by the Federal Reserve. Standards for commercial real estate continue to ... READ MORE >