The Bank of Canada cut its key interest rate to 2.5 per cent as a slowing economy and rising unemployment likely contributed to the unexpected policy action. … READ MORE >
Inflation
Stagflation is the story in August CPI as discretionary service prices surge
Demand for discretionary services remains stubbornly strong despite a slower pace of hiring and a softer pace of wage growth. … READ MORE >
Inflation expectations and the credibility of Fed policy
Does the Fed have the credibility not only to cut its policy rate next week but also to reduce it further in the following months, to the long-run neutral rate of 3% without stoking inflation? … READ MORE >
Canada’s economy in sore need of an interest rate cut as job losses mount
Canada’s economy lost jobs in back-to-back months for the first time since 2021, pushing the odds of an interest rate cut this month significantly higher. … READ MORE >
Inflation’s persistence, the Fed and expansionary fiscal policy
With inflation well above the Federal Reserve’s 2% target and rising, and expansionary fiscal policies about to kick in, calls for rate cuts may be premature. … READ MORE >
Rising inflation, increased spending complicate Fed’s next decision
While nominal gains in spending and income look strong on the topline, adjusting for inflation is necessary—and subsequently implies an economy that is growing just above 1 percent. … READ MORE >
Market Minute: Diverging inflation expectations
Policy decisions by the Federal Reserve will rest upon whether it thinks that higher tariffs will result in a one-time increase in prices or persistent inflation. … READ MORE >
Wrong data at the right time: Mixed data complicates Fed’s decision
A lot is happening in the economy, but one trend has become clear: The economy is slowing but not enough to guarantee a rate cut. … READ MORE >
Tariffs drive producer prices higher, squeezing margins
Equity markets, buoyed in recent months by solid earnings, may face pressure as profit margins shrink after companies absorb tariff costs. … READ MORE >
Market Minute: Are foreign exporters paying tariffs?
Most of the initial costs of tariffs are being absorbed by domestic firms and households. … READ MORE >