Central banks went from the transitory narrative to scrambling to prevent another Great Inflation era, faster than it takes to print $100 billion in Fed Treasuries. In a speech today, US Federal Reserve Chairman Jerome Powell pledged to take extreme measures to curb inflation if needed. The central banker warned this includes the possibility of […]
The US is raising interest rates for the first time in years, and they plan to make up for lost time. The Federal Open Market Committee (FOMC), which governs the US Federal Reserve, announced a quarter-point hike today. This increases the federal funds rate lower (0.25%) and upper (0.50%) bounds for the first time since […]
American real estate just spent another quarter in bubble territory, according to its central bank. The US Federal Reserve Exuberance Index shows US real estate was still exuberant in Q3 2021. A quarter before, the market fit the criteria set out by researchers to be considered a bubble. It also happened to be the quarter […]
Global markets are puking as the Ukraine-Russia conflict presents global uncertainty and risk. BMO chief economist Douglas Porter wrote a special brief to clients today, explaining this doesn’t change much at this point. BMO still expects the Bank of Canada (BoC) and the US Federal Reserve to hike interest rates in March. The influence on […]
Canadian real estate is still in bubble territory but excitement is fading fast. The US Federal Reserve (US Fed) Exuberance Index for Q3 2021 shows Canada is still in bubble territory. At this point, the gap between fundamentals and price have expanded for over a half decade. As higher rates approach, the index is showing […]
Central banks may have held rates too low for too long, making it difficult to normalize. The US is now discussing the flattening of the “yield curve,” often a sign of an economic slowdown. Canada is ignoring a similar discussion, despite flattening even faster than the US. Flattening quickly turns into yield curve inversion, considered […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Housing Grew Faster Than Population, Speculative Mindset Building: BMO Canada’s housing supply is growing faster than the population and has been for decades. BMO economists dived into the latest Census data and found the population grew 5.2% from 2016 to 2021, […]
Canada and the US both reported the highest inflation in decades, but they have different takes on tackling it. In recent days, the Bank of Canada (BoC) softened its stance on rate hikes, blaming transitory issues. Meanwhile, the US Federal Reserve has become more aggressive, calling an inflationary shock. Both countries are expected to raise […]
Canada is preparing to tighten interest rates with the US, but it will encounter some hurdles. That’s the take from Jimmy Jean, Chief Economist at Desjardins. In a note to clients today, the economist said he expects Canada to start rate hikes with the US. However, the country won’t be able to keep up as […]
Canadian real estate prices are some of the fastest growing in the world, and have been for some time. The US Federal Reserve (the Fed) updated its real home price index for Q3 2021. All G7 countries are seeing home price growth, but nowhere is quite like Canada. In Canada, real estate prices have grown […]
