We believe the U.S. is undergoing a large price-level adjustment, not shifting to a persistently higher inflation regime.
One year since the inception of one of the most severe recessions in modern history, women’s engagement in the labor force is crucial to the economic recovery.
With a narrowly Democratic Congress, U.S. fiscal spending is likely to increase on economic relief from the pandemic, infrastructure, and healthcare, boosting the economic rebound.
The Federal Reserve signals that monetary policy accommodation will remain firmly in place.
Washington will likely focus on fiscal stimulus immediately – but given the realities of governing and the pandemic, economic recovery will take time.
Canada’s central bank looks to evolve its policy framework amid concern over disinflationary trends.
The lack of market reaction suggests that many investors are not convinced that the Fed’s new guidance represents any material shift in policy.
The Federal Reserve released the results of its multiyear framework review alongside a speech by Fed Chair Jerome Powell at the Kansas City Fed’s Economic Policy Forum on 27-28 August. While the announcement came earlier than anticipated, the conclusions were in line with the evolutionary, not revolutionary, changes to the Fed’s framework we have long been expecting.