Skip to main content

Featured

Market Volatility: Stocks Flatten as Powell's Remarks Weigh on Gains

The stock market experienced a turbulent session on Wednesday, ultimately closing near flat after Federal Reserve Chair Jerome Powell's comments on monetary policy and inflation concerns. The S&P 500 ended nearly unchanged , giving back earlier gains as investors digested Powell’s remarks on the Fed’s stance regarding interest rates and economic restraint. Powell reiterated that the central bank remains cautious about inflation, particularly in light of tariff-driven price increases expected over the summer. While the Fed signaled that borrowing costs are likely to decline this year, the pace of future rate cuts appears to be slowing.  Following Powell’s speech, U.S. Treasury yields reversed their earlier declines , influencing market sentiment. The Dow Jones Industrial Average fell 43.83 points (0.10%) , while the Nasdaq Composite managed a slight gain of 23.66 points (0.12%).  Investors also kept a close eye on geopolitical developments, particularly tensions in the Midd...
Post a Comment
Read more

article

Labels

Bank of Canada Holds Steady Amid Trade Uncertainty

 

The Bank of Canada is expected to maintain its key interest rate at 2.75% as trade tensions between Canada and the United States continue to cloud the economic outlook. This decision comes after the central bank held rates steady in April, citing the need for more clarity on how ongoing tariff disputes would impact the economy.

Recent economic data suggests that businesses have been adjusting to the uncertainty, with Canada’s GDP surpassing expectations in the first quarter as companies rushed to mitigate potential tariff effects. However, inflation remains a concern, with annual inflation cooling to 1.7% in April, largely due to the removal of the consumer carbon price.

Despite calls for rate cuts from some economists, the Bank of Canada appears to be taking a cautious approach, waiting for further signs of economic weakness before making any adjustments. With manufacturing jobs declining and the housing market stagnating, some analysts argue that a rate cut may still be necessary in the near future.

As global markets react to shifting trade policies, the Bank of Canada’s decision will be closely watched by investors and policymakers alike. The central bank has emphasized its commitment to price stability, suggesting that any future rate changes will be carefully considered. 

For now, Canadians can expect borrowing costs to remain unchanged, as the Bank of Canada navigates the uncertain economic landscape.

Labels:

Comments

Post a Comment