The Bank of Canada held its policy rate at 5% at its meeting on Tuesday, as widely expected, while continuing its restrictive monetary policy of quantitative tightening. But the central bank made a marked shift in its statement, turning from a focus on inflation to one on growth with a decidedly ... READ MORE >
Inflation
Hot inflation data dims prospects for a Fed rate cut in June
The U.S. consumer price index came in above expectations for March, putting the Federal Reserve in a difficult position as it seeks to starting cutting interest rates this year. Both overall and core inflation remained unchanged at 0.4% monthly, the third consecutive month that the overall CPI ... READ MORE >
U.S. jobs report: American exceptionalism amid dynamic growth
While it’s always good to identify risks to the economic outlook, too often market players mistake the condition of a few trees—there are always isolated problems—with the health of the forest. The March jobs report shows just how healthy the American labor market is, despite isolated criticisms. ... READ MORE >
Service sector continues to normalize in March
The service sector posted slower growth in March as price growth fell to the lowest level since the start of the pandemic, according to data from the Institute for Supply Management on Wednesday. The composite index fell to 51.4 from 52.6, while the prices paid subindex dropped to 53.4 from ... READ MORE >
Full employment, low inflation and a virtuous cycle in the American economy
Until recently, the idea that economy could simultaneously have low levels of unemployment and low inflation seemed to be a fantasy. Conventional wisdom, after all, holds that when unemployment is low, businesses need to pay higher wages to attract workers, which pushes up the cost of goods and services, ... READ MORE >
The Fed at an inflection point: A webinar from RSM US and U.S. Chamber of Commerce
After two years of tightening monetary policy to restore price stability, the Federal Reserve is at an inflection point as it considers interest rate cuts. With inflation easing and the labor market showing signs of softening, the Fed has signaled that it intends to cut rates three times this ... READ MORE >
Fed holds rates steady as it implies three rate cuts in 2024
The Federal Reserve is looking to cut its policy rate three times this year, according to information inferred from the Summary of Economic Projections and policy statement released on Wednesday. The cuts would reduce the policy rate by 75 basis points, from the current range between 5.25% and 5.5% ... READ MORE >
February’s inflation in Canada makes case for rate cuts
Canada's consumer price index fell to 2.8% February, marking the second consecutive month of decline and bolstering the case for the Bank of Canada to cut rates. The decline wasn't limited to just the headline number. Core measures of inflation eased as well: Trimmed CPI, which excludes extreme price ... READ MORE >
February consumer price index: Sticky yet under control
The consumer price index increased at a robust rate in February for the second month in a row though this increase was not a surprise given the recent rise in gasoline prices, and, more importantly, the noise in housing inflation data. The top-line and core CPI numbers both grew at 0.4% on the ... READ MORE >
U.S. employment report: Robust hiring continued in February
Sustained demand for labor in the American economy was on vivid display on Friday as the Labor Department reported that 275,000 jobs were created in February. The Bureau of Labor Statistics revised down its initial estimate of the January jobs report from 353,000 jobs created to 229,000 and the ... READ MORE >