Nearly two years into the pandemic, there are signs that the worst of a once-in-a-century shock to the global economy is beginning to fade. As the economy approaches a full reopening, we expect growth in 2022 will exceed 4%, the unemployment rate will fall to 3.5% and job growth will average ... READ MORE >
monetary policy
Fed slows asset purchases as it moves to end pandemic-era accommodation
The Federal Reserve announced on Wednesday that later this month it would start paring back its pandemic-era monetary accommodation even as it held its policy rate between zero and 25 basis points. This policy step, announced after the two-day meeting of the Federal Open Market Committee, creates ... READ MORE >
RSM Canada Financial Conditions Index: An inflation tantrum?
Financial markets around the world are reacting to the rising risk of inflation and the prospect of policy responses by central banks, all of which have led to a modest easing in our RSM Canada Financial Conditions Index. The Bank of Canada has already halted its bond purchase plan, the Reserve ... READ MORE >
FOMC preview: Tapering explained
Next week’s meeting of the Federal Open Market Committee will focus on the Federal Reserve’s exit from its pandemic-era asset purchase program that has sent its balance sheet above $8.5 trillion. We expect that the Fed will announce plans to reduce its monthly monetary accommodation of $140 billion ... READ MORE >
Bank of Canada talks like a hawk and walks like a dove as it keeps rates steady
The emerging trend of central banks talking like hawks and walking like doves amid supply chain disruptions and persistent inflation continued as the Bank of Canada kept its policy rate at 0.25% on Wednesday. The central bank signaled that it intends to end its quantitative easing program and move ... READ MORE >
FOMC meeting: Prelude to tapering amid global financial turbulence
Monetary policy is always a difficult judgment call. Balancing growing global risk aversion, domestic political turmoil and general uncertainty around the underlying condition of the real economy make this week’s Federal Open Market Committee policy decision a bit more challenging than what many ... READ MORE >
Fed Jackson Hole conference: Powell reaffirms market expectations
Federal Reserve Chairman Jerome Powell’s widely anticipated comments on the economic outlook did not disappoint on Friday as he reaffirmed market expectations of a slowing in the pace of monetary accommodation before the end of the year while retaining flexibility around the rising economic risks linked ... READ MORE >
Federal Reserve policy and interest rates in 10 charts
The Federal Open Market Committee retained its accommodative policy stance on Wednesday, keeping short-term rates at the zero bound to provide liquidity for commercial activity. The FOMC said it would maintain its monthly purchases of securities to pressure long-term interest rates lower, facilitating ... READ MORE >
FOMC preview: Expect more talk, less action at the July meeting
Inflationary risk and the delta variant of the coronavirus will be front and center at next week’s meeting of the Federal Open Market Committee, while policy changes will take a back seat. The primary takeaways of the meeting, should there actually be anything other than a reaffirmation of the status ... READ MORE >
RSM Canada Financial Conditions Index: Accommodation to continue while economy shows signs of revitalization
At its June policy meeting, the Bank of Canada reiterated its intention to maintain an accommodative monetary policy as uncertainty over the pace of the pandemic abates and the economy recovers. As it has for the past 16 months, the bank is keeping its policy rate at near-zero to maintain liquidity ... READ MORE >