Canada’s housing starts fell to 267,443 in August, a 3% drop from July, continuing the decline in the housing sector because of rising interest rates. … READ MORE >
interest rates
U.S. August CPI: Core inflation arrives hot even as gas prices fall
Premature calls for the Fed to pause its campaign to tame inflation should be politely dismissed given the 0.1% increase in top-line inflation in August. … READ MORE >
Initial jobless claims drop to lowest level since May
The labor market showed continuing strength as last week’s new filings for jobless claims fell for the fourth week in a row. … READ MORE >
Bank of Canada increases policy rate to 3.25%
The Bank of Canada increased its policy rate by 75 basis points on Wednesday, bringing the overnight rate to 3.25%, and said that it would continue to reduce its balance sheet. … READ MORE >
Falling gas prices imply further inflation relief
This recent decline in gas prices should put downward pressure on top-line monthly inflation when the consumer price index for August is released on Sept. 13. … READ MORE >
Housing proved a drag on Canada’s economy in the second quarter
Canada’s real gross domestic product rose by 0.1% in June from May amid a slumping housing sector, and by 3.3% overall for the second quarter. … READ MORE >
Powell at Jackson Hole: From era of abundance to one of insufficient supply
Federal Reserve Chairman Jerome Powell was blunt in his remarks at Jackson Hole, Wyo.: “Reducing inflation is likely to require a sustained period of below-trend growth.” … READ MORE >
Better-than-expected GDP and jobless claims push back recession fear
The decline in U.S. gross domestic product growth in the second quarter was less than previously estimated, and jobless claims fell by 0.,8%. … READ MORE >
Expectations at the end of business cycles
The Federal Reserve has a blunt yet effective instrument to fight inflation: raising the federal funds rate. But using it requires a delicate balancing act. We offer a snapshot of what to look for as the economic cycle plays out. … READ MORE >
Jackson Hole preview: Powell to set tone for next few years
Policymakers, investors and firms should prepare for a regime change in inflation that will require tighter monetary policy ahead as the central bank lifts the policy rate to 4% by the end of the year. … READ MORE >