Skip to main content

Featured

Wall Street Futures Ease as Strong GDP Growth Tempers Fed Cut Hopes

US stock futures dipped Tuesday morning as stronger-than-expected GDP growth raised doubts about near-term Federal Reserve rate cuts, sending the Dow, S&P 500, and Nasdaq futures slightly lower. Market Overview Dow Jones, S&P 500, and Nasdaq futures all slipped about 0.2% in premarket trading. The decline comes after three consecutive winning sessions for US equities, highlighting investor caution despite recent momentum. Gold and silver continued their rally, with both metals on pace for their best year in over four decades. Economic Data Impact The third-quarter GDP report showed the US economy grew at a 4.3% annualized rate, well above the 3.3% forecast. Strong consumer spending drove the surprise, but analysts warn that the government shutdown likely slowed growth in the fourth quarter. The data suggests economic resilience, but also reduces the likelihood of immediate Fed rate cuts, which had been priced in by markets. Investor Sentiment Traders are recalib...
Post a Comment
Read more

article

Labels

Bank of Canada Cuts Rate by Quarter Point Amid Tariff Uncertainty

The Bank of Canada announced a quarter-point reduction in its key interest rate on Wednesday, bringing it down to 3%. This marks the sixth consecutive rate cut since June 2024. The central bank cited stabilized inflation and a strengthening economy as reasons for the cut. However, it also highlighted the looming threat of U.S. tariffs as a significant source of uncertainty.

Governor Tiff Macklem emphasized that while the economy is showing signs of improvement, the potential for broad-based tariffs could pose a major challenge. The Bank of Canada revised its GDP growth forecast downward to 1.8% for 2025 and 2026, factoring in lower population growth and increased policy uncertainty.

The central bank presented several scenarios in which tariffs could impact the economy, projecting a potential reduction in GDP by 2.4% in the first year if tariffs are imposed. Macklem stated that the bank would closely monitor developments and assess the implications for economic activity and monetary policy.

The decision to cut rates comes as the U.S. threatens to impose 25% tariffs on Canadian goods. The Bank of Canada warned that such tariffs could lead to a recession in Canada, but it also indicated that it might refrain from further monetary policy support to avoid reigniting inflation.

The central bank's cautious approach reflects the delicate balance it must maintain in the face of economic uncertainties and the potential for a trade war with the U.S.




Labels:

Comments

Post a Comment