Economic Outlook and Summary The Federal Reserve proceeded with a neutral stance in their December rate announcement, with the prospect of undertaking additional open market operations—in the form of short-term coupon-bearing securities. Progress in the trade war prompted positive sentiments in the markets as phase one of the agreement will require China to purchase approximately […]

Economic Outlook and Summary The Federal Reserve announced an interest rate cut of 25 basis point—to 1.50-1.75%. Quantitative easing continues to provide moderate support for the economy as the reserve continues to repurchase treasury bill—maintaining the funds rate within range. Additionally, the US-China trade war remains unclear as the two parties indicate differing outlooks. Following […]

Economic Outlook and Summary The Federal Reserve signaled towards a dovish stance in early-October as it announced it will begin to purchase Treasury bills and conduct overnight repurchase agreements—a sign of short-term quantitative easing. Additionally, the US agreed to hold tariffs at 25% and China agreed to purchase 40-50 billion dollars of US agriculture, signaling […]

Economic Outlook and Summary After strong economic indicators demonstrated an increased probability of a recession in the U.S, investors will be looking towards the Federal Reserve as they expect a rate-cut of 25 basis points. Despite a strong August for employment and business activity, an inversion of the 10- and 2-year yield curve and the […]

Economic Outlook and Summary The U.S Federal Reserve has recently signaled towards tightening monetary policy, after it cut interest rates for the first time since 2008—by 0.25 percentage points. Although the USD saw a brief decline, the Feds hawkish turn has resulted a rally of up to 1.25 percentage points, since the announcement. Further trade […]

Economic Outlook and Summary The U.S Federal Reserve’s dovish turn in the month of June caused the U.S dollar to register its first loss since January 2019. The Fed has signaled rate cuts could be coming in 2019 and possibly be in the month of July. Since the USD is heavily trade-weighted, it is still […]

Economic Outlook and Summary Federal Reserve Chairman Powell has signaled the Fed will look to cut rates, if necessary, in 2019 and it looks like they are prepared for U.S President Trump’s trade war and the implications of it on the U.S economy. Expectations around the Federal Reserve believe to be that there will be […]

Economic Outlook and Summary The Bank of Canada is currently following in the footstep of the Federal Reserve by taking a more dovish stance and downgrading the outlook in accordance to the reality of available data. The struggling Canadian dollar has been largely range-bound between 73 and 77 U.S cents since last summer, still lacking […]

Economic Outlook and Summary The Federal Reserve announced that it would not raise interest rates for 2019 and it does not look like they plan for any rate hikes until next year. An inverted yield curve in the U.S. is alarming the Fed and investors all over as it shows signs of an oncoming recessionary […]

Economic Outlook and Summary U.S and Canada’s central banks have shifted into a wait-and-see mode now that their policy rates are narrowing in on the lower bound estimates of the neutral range. Waiting will hopefully reset the bar for further rate hikes in 2019, but there is uncertainty surrounding an economic recovery that can sustain […]