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 >
monetary policy
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 >
The post-pandemic era and the end of hyper-globalization
The American economy is in the midst of a long-lasting structural change following the severe shocks unleashed by the pandemic. … READ MORE >
Amid global economic turmoil, stress grips fixed-income markets
Fixed-income markets are signaling a shift in perceptions of financial stability and raising a caution flag for investors. … READ MORE >
FOMC policy decision: Fed hikes policy rate by 75 basis points
At this critical juncture, with the policy rate residing in neutral terrain, it is natural for the Fed to adjust its rhetoric as it considers next steps. … READ MORE >
The Real Economy, Volume 86: How the Fed is managing its dual mandate
In this month’s issue of The Real Economy, our chief economist, Joe Brusuelas, examines how the Fed, with inflation on the rise, is trying to strike a balance between maintaining price stability and full employment. … READ MORE >
RSM US Financial Conditions Index: A move toward normal
After nearly two years of extreme accommodation in the financial markets, the RSM US Financial Conditions index eased to 0.96 standard deviations above neutral—a sign that markets are starting to price in more risk. … READ MORE >
U.S. Consumer Price Index: Inflation broadens out as shelter costs rise by 4.8%
The overall Consumer Price Index climbed by 6.8% on a year-ago basis in November, and by 0.8% on the month as inflation continued to broaden out. … READ MORE >
Bank of Canada decision: Central bankers set the stage for 2022 rate hikes
The Bank of Canada kept its policy rate at 0.25% at its December meeting on Wednesday as it prepares the public and market participants for the normalization of monetary policy and the first increase in interest rates next year. … READ MORE >
Powell reappointed to lead the Fed, with Brainard elevated to vice chairwoman
The Biden administration’s widely expected reappointment of Jerome Powell as chairman of the Federal Reserve on Monday is a strong step toward providing stability and clarity for financial markets at a time when the central bank is under pressure to accelerate efforts to address inflation. … READ MORE >