The Federal Reserve on Wednesday reduced its policy rate by 50 basis points to a range between 4.75% and 5% to protect full employment and preserve the soft landing it has achieved following a historic price shock. The central bank also laid out a path of monetary policy that suggests additional 25 ... READ MORE >
monetary policy
Fed holds rates steady as it sets up for September cut
The Federal Open Market Committee kept its federal funds policy rate between a range of 5.25% and 5.5% at its meeting Wednesday while signaling that it is moving toward easing its restrictive policy rate. We expect that the FOMC will reduce the policy rate by 25 basis points at its September ... READ MORE >
U.S. financial conditions update: A shift in structure and a new center of gravity
Monetary policy has reached a pivot point, bringing an increased probability for sustained growth and easing fears of a premature end to the business cycle. This improvement should underscore the positive outlook that will be featured in the Federal Open Market Committee’s Summary of Economic ... READ MORE >
The case for rate cuts: Read our chief economist’s op-ed in Barron’s
With inflation coming under control around the world, major central banks have embarked on a shift in monetary policy to spur demand and foster economic growth, In the past two days, the Bank of Canada and European Central Bank kicked off this regime change with the announcements of 25 basis-point ... READ MORE >
American consumers continue to spend despite sticky inflation
Spending remained strong in March on the heels of robust income growth despite sticky inflation, according to Commerce Department data released on Friday. The data pointed to the underlying strength of the economy and provided a rebuttal of sorts to the disappointing gross domestic product figure ... READ MORE >
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 >
Bank of Canada preview: A dovish tone with rate cuts on horizon
The Bank of Canada will almost certainly leave its policy rate unchanged when it meets this week, but the tone of its statement will shift to dovish as bank officials recognize easing inflation, the slowing labour market and stagnant growth. We expect that the central bank's first rate cut will occur ... 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 >
Bank of Canada holds rates steady at 5% amid weak growth
As expected, the Bank of Canada on Wednesday maintained its policy rate at 5 per cent and continued its restrictive monetary policies. At the same time, though, its public statements signed a more dovish tone. In softening its rhetoric, the central bank noted the slowdown in the global and domestic ... READ MORE >
Fed signals end of rate hikes and projects cuts in 2024
The Federal Reserve signaled at its meeting on Wednesday that it is done raising its policy rate and is poised to reduce it by 75 basis points next year, with more cuts after that. The Fed also reduced its inflation forecast for next year to 2.8% from 3.3%, and to 2.4% from 2.5% for 2025, which ... READ MORE >