A worried Bank of Canada is cutting interest rates Published by Hilliard MacBeth on Jul 26, 2024 Central bankers in Canada went out on a limb by cutting a key interest rate this week. The Bank of Canada cut its benchmark rate for the second time, by 0.25 percent to make a full ½ point reduction this year. The most powerful central bank, the U.S.... Read more
The Fed will cut rates too late in this cycle Published by Hilliard MacBeth on Jul 19, 2024 Anticipation ahead of the U.S. Federal Reserve’s first rate cut is growing. Traders are betting on a first quarter-point cut at the meeting on September 17-18 as the most likely date, with more cuts to come later this year in November and December. But... Read more
Canada lags far behind other countries in expenditure on research and development as a portion of GDP Published by Hilliard MacBeth on Jul 12, 2024 Canada remains far behind many other developed countries in the OECD when comparing expenditures on research and development as a portion of GDP. This lack of investment will continue to hurt Canadian economic growth and productivity for years to come... Read more
An early indicator of recessions is very useful for investors Published by Hilliard MacBeth on Jul 05, 2024 On July 5, 2024, the unemployment rate in the U.S. was announced at 4.1 percent. This report appears to have triggered an extremely reliable recession indicator. The Sahm Rule, named after former Federal Reserve economist Claudia Sahm, says that if the... Read more