Jan 26, 2022 | Notes from the Desk
There is no stopping the Canadian job machine. With several pandemic unemployment support programs ending in October, it appears people decided to take up many of the jobs on offer: · 153.7k jobs created. · Currently, 186K more people are employed than in Feb 2020. ·...Jan 26, 2022 | Notes from the Desk
Four More Years. Biden nominates Jay Powell for a second term. · Jay Powell to serve a second term as chair of the Federal Reserve. · Lael Brainard, considered the competitor to the throne, assumes the role of vice-chair and is expected to be named vice-chair of...Jan 26, 2022 | Notes from the Desk
Canadian Inflation · Headline CPI came in as expected at 4.7%, while core inflation was 1.8% (a touch below the expectation of 1.9%) · With the Bank of Canada forecast of 4.8% for Q4, today’s numbers should do little to ease concerns over inflation nor should it stoke...Jan 26, 2022 | Notes from the Desk
Today’s FOMC was a relatively straightforward, as-expected affair. · The tapering of QE begins this month with a reduction of $15 bn per month ($10 bn in treasuries, $5 bn in mortgages) · At this pace, QE will be done in mid-June, which sets the stage for rate hikes...Jan 26, 2022 | Notes from the Desk
A quick note from our trading desk on today’s Bank of Canada meeting and press conference. · The BoC has officially ended QE and moved into the reinvestment phase, where they will simply reinvest maturing bonds. They expect to be in this reinvestment phase until...Jan 26, 2022 | Notes from the Desk
Federal Reserve Chairman Jay Powell has achieved an amazing outcome. His highly anticipated speech this morning was a masterpiece of optimism and calmness. · Tapering is expected later this year, with the exact timing dependent on the impact of delta. No panic in...
