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The Fed Just Hiked Rates. Here's What It Means for Your Canadian Mortgage.

  The U.S. Federal Reserve raised its benchmark rate 25 basis points yesterday — the first hike in three years. The Bank of Canada hasn't moved. That gap is now the biggest story in Canadian personal finance. MoneySavings.ca  |  September 17, 2026  |  Canadian Money Brief Yesterday afternoon, the Federal Open Market Committee voted 12-0 to raise the U.S. federal funds rate by a quarter point, pushing it to a target range of 3.75%–4.00%. It's the Fed's first rate hike since July 2023, and Chair Kevin Warsh made clear it almost certainly won't be the last. The Bank of Canada, by contrast, has held its overnight rate at 2.25% through seven straight meetings. It doesn't decide again until October 28. For Canadians with a mortgage, a renewal coming up, or a home equity line of credit, this matters more than it might look at first glance. 3.75–4.00% New U.S. Fed Rate 2.25% Bank of Canada Rate 1.625% Rate Gap (vs. 1.375% yesterday) ~71.5¢ Loonie (post-hike low) What th...

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Ottawa’s Foreign Service Faces Budget Axe Amid Push for Efficiency

Ottawa is preparing to implement sweeping budget cuts that will impact Global Affairs Canada, including the foreign service, according to Foreign Affairs Minister Anita Anand. The move comes as part of Prime Minister Mark Carney’s broader plan to reduce government spending by 7.5% starting next spring.

Anand emphasized the need to eliminate “red tape and inefficiencies,” though she declined to specify which programs or positions might be affected. The announcement has sparked concern among former diplomats and the Professional Association of Foreign Service Officers, who warn that trimming diplomatic resources could weaken Canada’s global influence and its ability to protect citizens abroad.

The cuts arrive at a time when Global Affairs Canada is aiming to expand its international footprint, creating a paradox between fiscal restraint and diplomatic ambition. Critics argue that reducing Canada’s foreign service could undermine key strategies in the Indo-Pacific and Africa, especially as rival powers like China and Russia bolster their global presence.

Finance Minister François-Philippe Champagne has asked all departments to identify areas for savings, with a focus on streamlining operations rather than across-the-board reductions. While the government insists the cuts are not intended to eliminate jobs, attrition and restructuring may be inevitable.

The debate continues over how Canada can balance its fiscal goals with its international responsibilities.

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