Notes from the Desk – US CPI – A Welcome Relief Federal Reserve officials are feeling a bit more comfortable this morning as US October inflation data came in lower than expected. YoY headline inflation was 7.7% vs. 8% expected YoY core inflation was 6.3% vs. 6.5% expected Used car prices dropped, adding […]
Note from the Desk – Higher Rates, Hire More! The North American labour markets continue to confound conventional monetary theorists. Higher rates and a looming recession don’t seem to be impacting hiring (yet). By the Numbers: Canada: 111k jobs created, crushing expectations for 10k The unemployment rate was unchanged at 5.2% YoY growth in hourly […]
Notes from the Desk: FOMC Meeting – The Over/Under The Federal Reserve (Fed) raised policy rates by 75bps bringing the overnight rate into the 3.75% – 4% range. Chairman Powell reiterated that rates still need to go higher, however, given lags in monetary policy, it is appropriate to consider moving in smaller increments. The […]
Notes From The Desk: Bank of Canada – Reading The Tea Leaves. “We are drawing closer to the end, but we are not there yet” Tiff Macklem The Bank of Canada (BoC) surprised markets by delivering a 50 bps hike rather than the expected 75 bps, bringing the overnight rate to 3.75%. Bond markets […]
Inflation Frustration – Just Not Cool Enough Headline CPI increased 0.1% in September with the annual rate easing 0.1% to 6.9% (versus consensus 6.7%) CPI excluding food and energy rose 0.4% (seasonally adjusted) The core data was unchanged with CPI-trim at 5.2% and CPI-median at 4.7% Implications. Inflation is proving stickier than hoped and this […]