Canada’s subdued economic activity and the drop in inflation despite ongoing tariffs imply that the Bank of Canada could cut interest rates again this year. … READ MORE >
interest rates
Market Minute: Rate cuts are taking longer to have an impact
The lag time between rate cuts and when those cuts are felt in the real economy is increasing, whether it’s in consumer spending or businesses taking on more risk. … READ MORE >
Fed cuts its policy rate a quarter point amid growing tension
It would not be surprising to see market players assume that the de-facto inflation target is moving higher, toward 3%. … READ MORE >
Market Minute: Fed to cut rates and signal more easing
We expect the FOMC to cut the federal funds policy rate by 25 basis points to a range of 4% to 4.25% at its meeting on Sept. 17. … 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 >
Labor market loses steam as hiring rises by 22,000 in August
The slow hire, slow fire economy remained intact in August as the demand for new workers continued to sag, resulting in the creation of 22,000 jobs. … 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 >
Powell opens door to September cut as Fed shifts to a balanced 2% target
Federal Reserve Chairman Jerome Powell on Friday gave investors and policymakers the words that they wanted to hear on a possible September rate cut. … READ MORE >