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5 Things to Know Today: Fed Decision Looms, TSX Slides, Gas Prices Climb (Sept 16)

  Wednesday, September 16, 2026 The Fed's biggest decision in years lands at 2 p.m. ET today, the TSX and loonie are both licking their wounds, and drivers are paying more at the pump despite the gas tax holiday. Here's what's moving your money this morning. 1. The Fed Decides on Rates Today — and a Hike Looks All but Certain The Federal Reserve announces its rate decision at 2 p.m. ET, with Chair Kevin Warsh's press conference to follow at 2:30 p.m. Markets have priced in over 90% odds of a 25-basis-point hike, which would lift the target range to 3.75%–4.00% from 3.50%–3.75%, where it's sat since December. It would be the first hike of this cycle, driven by inflation still running above target even as the labour market holds up. What it means for you: A Fed hike widens the gap with the Bank of Canada's 2.25% rate, which tends to pressure the loonie lower and nudge Canadian bond yields — and by extension fixed mortgage pricing — upward. Watch for the reaction ...

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Tariff Truce, but Trade Tensions Linger

 

A temporary pause in U.S. tariffs has provided a brief respite for Canada, yet uncertainty continues to cloud North American trade relations. President Donald Trump’s decision to delay the 25% tariffs on Canadian and Mexican imports for 30 days—pending further border security and anti-drug measures—has momentarily stalled a looming trade war. However, Canadian officials and business leaders remain wary that this delay may only be a short intermission in a longer-term conflict.

Prime Minister Justin Trudeau’s government has moved quickly by announcing initiatives such as a $1.3 billion border security plan, the appointment of a “fentanyl czar,” and the deployment of additional border personnel. Despite these measures, major Canadian unions and provincial leaders warn that the threat of reimposed tariffs could still jeopardize jobs and disrupt economic stability. Industries dependent on cross-border supply chains—from energy to manufacturing—are bracing for potential price increases and operational disruptions, with investors watching market responses closely.

While financial markets showed only a modest selloff after the announcement, many remain cautious about what future negotiations might bring. The administration’s focus on curbing illegal immigration and drug trafficking has, for now, diverted immediate tariff implementation, but the possibility of renewed tariff action—potentially even extending to goods from the European Union—keeps uncertainty alive on both sides of the border.


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