Not super interesting or unexpected on its own, but its interesting to see how things evolve.
In a few months we’re going to have CUSMA renegotiations. I would expect more „tariff shocks“ like the ones mentioned in the article.
The second issue is that Powell’s term as fed chair ends in May, after which Trump is going to do his best to appoint a flunkie to that position, with the goal of gaining near-direct power over US interest rates. If that actually happens, I expect a huge US interest rate cut to goose the US economy ahead of midterm elections (inflation be damned). Canada will be affected by this.
All of that said, I can see why The BoC doesn’t want to lower rates at this time even if it was otherwise warranted. Keep your powder dry and all that.
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Not super interesting or unexpected on its own, but its interesting to see how things evolve.
In a few months we’re going to have CUSMA renegotiations. I would expect more „tariff shocks“ like the ones mentioned in the article.
The second issue is that Powell’s term as fed chair ends in May, after which Trump is going to do his best to appoint a flunkie to that position, with the goal of gaining near-direct power over US interest rates. If that actually happens, I expect a huge US interest rate cut to goose the US economy ahead of midterm elections (inflation be damned). Canada will be affected by this.
All of that said, I can see why The BoC doesn’t want to lower rates at this time even if it was otherwise warranted. Keep your powder dry and all that.