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Fed Faces New Economic Landscape Post-Trump Victory

  The U.S. Federal Reserve is poised to reduce its benchmark policy rate by a quarter of a percentage point at the conclusion of its policy meeting on Thursday. This decision, while significant, is overshadowed by the broader economic uncertainties following Donald Trump’s re-election. Trump’s victory introduces potential shifts in economic policies, including changes to tariffs, tax cuts, and immigration, which could significantly impact the Fed’s approach to managing economic growth and inflation. The central bank, which has been focused on combating inflation, may now need to navigate a more complex economic environment with higher federal deficits and potential inflationary pressures. Market reactions have already been notable, with bond yields rising as investors anticipate a less aggressive rate-cutting cycle from the Fed. The central bank’s challenge will be to balance these new fiscal policies while maintaining its dual mandate of low inflation and low unemployment. As the Fed

Canadian economy shrank 1.1 per cent in Q3 on annualized basis

 


According to the latest data from Statistics Canada, the Canadian economy contracted at an annualized rate of 1.1% in the third quarter of 2023, which was below expectations. However, the real GDP most likely edged up 0.2% in October after a 0.1% gain in September.

The contraction in Q3 was mainly due to a decline in exports and a decrease in business investment. The country’s goods trade surplus with the world contracted by roughly $8.7 billion in Q3 to hit $1.7 billion.

Despite the contraction in Q3, the Canadian economy is showing signs of growth in October. The real GDP is expected to have increased by 0.2% in October after a 0.1% gain in September.

Based on the above information, I suggest the following title for your article: “Canadian economy contracts in Q3, but shows signs of growth in October”.


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