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Bank of Canada Holds the Line as Global Turmoil Clouds Outlook

  Bank of Canada Governor Tiff Macklem takes part in a press conference in Ottawa on September 17, 2025 The Bank of Canada has opted to keep its key interest rate steady at 2.25%, a decision that reflects the delicate balancing act policymakers face as global uncertainty intensifies. With inflationary pressures rising and economic growth showing signs of strain, the central bank is navigating a narrow path shaped by forces largely outside its control. A major driver of the current tension is the surge in oil prices triggered by ongoing geopolitical conflict. Higher energy costs are feeding into broader inflation, raising concerns that price pressures could become more persistent. At the same time, elevated borrowing costs and weakening consumer confidence are weighing on domestic economic momentum. By holding the rate, the Bank of Canada signals caution: it aims to avoid stifling growth while still keeping inflation expectations anchored. The central bank emphasized that it rema...
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Wall Street Slips as Powell Flags Lofty Stock Valuations

U.S. stocks pulled back on Tuesday, snapping a three-day streak of record highs, after Federal Reserve Chair Jerome Powell warned that equity prices appear “fairly highly valued.”

The S&P 500 fell 0.6%, the Nasdaq Composite dropped 1%, and the Dow Jones Industrial Average slipped 0.2%, despite hitting an intraday record earlier in the session.

Powell, speaking at the Greater Providence Chamber of Commerce, reiterated the Fed’s delicate balancing act: inflation risks remain tilted to the upside, while employment risks lean to the downside. He emphasized that there is “no risk-free path” for policymakers, underscoring the challenges ahead.

Tech stocks led the decline, with Nvidia sliding nearly 3% after its recent surge on AI investment news. Amazon, Microsoft, and Apple also weighed on the Nasdaq. Meanwhile, Boeing gained 2% after securing new international orders, helping limit losses on the Dow.

Investors are now turning their attention to upcoming economic data, particularly the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, due later this week.


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