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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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Trump Administration Eyes Fed Shake-Up as Powell’s Future in Doubt

The Trump administration is preparing to search for a new Federal Reserve Chair this fall, signaling a potential leadership shift at the central bank well ahead of Jerome Powell’s term ending in May 2026. Treasury Secretary Scott Bessent confirmed the administration’s intent in a recent interview, noting that “a lot of good candidates” are under consideration.

President Trump has been openly critical of Powell’s reluctance to cut interest rates, arguing that the Fed’s current policy is stifling economic growth. In a handwritten note to Powell, Trump urged a significant rate cut, calling the Fed Chair “Mr. Too Late” and blaming him for costing the U.S. “a fortune”.

While Bessent has emerged as a potential successor, he expressed contentment with his current role, stating, “I will do what the president wants, but I think I have the best job in DC”. Other names floated for the position include Fed Governor Christopher Waller, former Fed Governor Kevin Warsh, and White House economic adviser Kevin Hassett.

The administration is expected to announce a replacement as early as October, with the goal of ensuring a smooth transition before Powell’s term concludes. The move comes amid broader economic debates over tariffs, inflation, and the pace of monetary easing.

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