Tightening financial conditions are hurting the Canadian economy to the point where the rising risk of a recession and a housing contraction much larger than anticipated cannot be discounted. … READ MORE >
Inflation
Retail sales fall more than expected as spending and inflation cool
Retail sales in November posted the sharpest decline of the year, falling by 0.6% as shoppers pulled back from holiday spending. … READ MORE >
FOMC decision: Fed lifts policy rate to range of 4.25% to 4.5%
The Federal Reserve on Wednesday lifted its policy rate by 50 basis points and laid the groundwork for an eventual pause in interest rate increases early next year. … READ MORE >
November CPI: Easing inflation amid surging housing costs poses dilemma for Fed
The sharp 3.4% decline in goods costs on a three-month average annualized pace stands in contrast with the 8.9% increase in housing costs, all of which poses quite a dilemma for the Fed. … READ MORE >
Did fiscal spending go too far? Assessing the global economy.
Policymakers, firm managers and investors should anticipate a significant fiscal narrowing for both public and private actors in the post-pandemic period. … READ MORE >
FOMC preview: Policy rate to increase by 50 basis points
Such an increase would follow a series of 75 basis-point increases and would lift the Fed’s policy rate to a range between 4.25% and 4.5%. … READ MORE >
Producer price inflation hotter than expected ahead of Fed’s meeting
The producer price index for final demand rose by 0.3% in November and by 7.4% year-over-year, the Bureau of Labor Statistics reported on Friday. … READ MORE >
Jobless claims show an uptick in layoffs
New filings for jobless claims inched up by 1.8% last week to 230,000, remaining above the pre-pandemic level for the fifth week in a row. … READ MORE >
Bank of Canada increases policy rate to 4.25%
The Bank of Canada raised its policy rate by 50 basis points to 4.25% on Wednesday, the seventh consecutive increase since March. … READ MORE >
U.S. service sector grows, adding pressure on Fed
The Institute for Supply Management’s service index rose in November as business activities increased on the month. … READ MORE >