Inflation rises to 3% in Canada as global energy volatility persists
Canada’s consumer price index (CPI) rose to 3 per cent in July, up from 2.8 per cent previously, thanks to higher gasoline and travel tours prices. Measures of core inflation remained slightly below...
View ArticleParsimony is a feature, not a bug, at the new Fed
The most apt description of the policy framework early in Kevin Warsh’s tenure at the Federal Reserve is parsimonious. For the uninitiated, that term is a principle that states that among competing...
View ArticleBank of Canada holds interest rate again amid signs of economic recovery
The Bank of Canada held its overnight rate at 2.25 per cent on Wednesday—a widely expected move, but one delivered with a dovish tone amid ample signs of economic recovery. Job gains have improved...
View ArticleBank of Canada holds interest rate amid global uncertainty, domestic strain
The Bank of Canada kept its key interest rate at 2.25 per cent—a fifth consecutive hold—due to the elevated level of uncertainty around the direction of the domestic economy and the global financial...
View ArticleBank of Canada holds interest rate again as economic uncertainty mounts
The Bank of Canada again held its key interest rate at 2.25 per cent on Wednesday in a decision that provided little in the way of new information or an updated evaluation of the rapidly changing...
View ArticleMarket Minute: Kevin Warsh and Fed independence
During Kevin Warsh’s tenure as a governor at the Federal Reserve from 2006 to 2011, his voting record, and his public comments since then, have shown a clear predilection for tight monetary policy....
View ArticleBank of Canada holds interest rate again amid global economic disruptions
The Bank of Canada held its key interest rate at 2.25 per cent on Wednesday amid domestic economic slack and wider disruptions due to the ongoing war in the Middle East. This decision comes as the...
View ArticleBank of Canada holds interest rate again—and may stay put this year
The Bank of Canada maintained its key interest rate at 2.25 per cent on Wednesday amid a recent spate of soft economic data and labour slack. At this juncture—all things being equal—we do not expect...
View ArticleMarket Minute: Transmission of monetary policy to the real economy
Inside the dynamic $31 trillion American economy, policy must evolve as the economy changes. One of these changes is that risk markets have become less sensitive to changes in interest rates as fiscal...
View ArticleBank of Canada prudently holds interest rate ahead of 2026 challenges
The Bank of Canada held its key interest rate at 2.25 per cent on Wednesday—a prudent pause after consecutive cuts as the country’s labour market remains soft and unemployment remains elevated. It’s...
View ArticleBank of Canada cuts interest rate again in attempt to spur sluggish economy
Canada’s economy is slowing to the point that the Bank of Canada was comfortable making another interest-rate cut on Wednesday as it lowered its policy rate to 2.25 per cent. For some time, we have...
View ArticleCanada’s economy slowing as major free-trade renegotiation looms
Canada’s economy is slowing along with the global economy. While inflation is receding, there are pockets of higher prices for essential goods that remain difficult for low-income households contending...
View ArticleMarket Minute: Rate cuts are taking longer to have an impact
The Federal Reserve at its next meeting on Oct. 28-29 will once again be faced with setting monetary policy amid a weakening labor market and persistent inflation. When the central bank wants to...
View ArticleFed cuts its policy rate a quarter point amid growing tension
The buttoned-down and boring-by-design world of American central banking was upended on Wednesday as the Federal Reserve cut its policy rate by 25 basis points amid a dissent by the Federal Reserve’s...
View ArticleBank of Canada cuts interest rate to 2.5% amid economic, labour challenges
The Bank of Canada took bold action Wednesday to reduce its key interest rate by 25 basis points to 2.5 per cent as a slowing economy, rising unemployment, weaker oil prices and the effects of U.S....
View ArticleMarket Minute: Low rates, liquidity and leverage
Why is a 25 basis-point rate cut by the Federal Reserve so important? It is a question I often hear these days as I speak about the economy around the country. The truth is that for most Americans, a...
View ArticleInflation expectations and the credibility of Fed policy
Inflation expectations are the essential factor in determining whether rising prices in the economy will be temporary or instead prove enduring. Ever since inflation spiked during the pandemic, the...
View ArticlePowell opens door to September cut as Fed shifts to a balanced 2% target
The Kansas City Fed’s Economic Policy Symposium in Jackson Hole, Wyo., on Friday presented Federal Reserve Chairman Jerome Powell with an occasion to give investors and policymakers the words that they...
View ArticleThe Fed holds rates steady as two board members dissent
The Federal Open Market Committee held its policy rate in a range between 4.25% and 4.5% on Wednesday as it slightly opened the door to a rate cut this fall by noting “growth of economic activity...
View ArticleCanada’s consumer price index steady due to cooling housing market
Canada’s consumer price index rose 1.7 per cent in May, matching the 1.7 per cent increase seen in April, thanks to a more balanced housing market and smaller increases in travel prices. On a monthly...
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