Thoughts on BC Politics and More

“Some resilience” — those were the two words Bank of Canada governor Tiff Macklem used last week to describe how the Canadian economy is holding up under the weight of U.S. tariffs. Just a few days later, U.S. President Donald Trump added 35 per cent tariffs on Canadian goods to a running tally that includes hefty duties on steel, aluminum, automobiles and, more recently, semi-finished copper. With tariffs piling up over the past few months, economists say Canada’s economy is starting to show cracks — but few signs of collapse. TD Bank economist Marc Ercolao conceded it’s a “bit of surprise” to see the economy holding up against a massive disruption from Canada’s largest trading partner ... CLICK HERE for the full story ...

Many Canadians are growing increasingly worried about job losses and an approaching recession, according to new Bank of Canada research ... ... the bank noted that “fears of job losses remain elevated,” especially among younger Canadians, who reported a higher-than-average risk of losing employment. The concern stems in part from ongoing trade disputes, which have caused households to rethink their spending ... CLICK HERE for the full story

Few would confuse Hollywood action star Tom Cruise with Bank of Canada governor Tiff Macklem. But while Cruise rides a plane in tailspin to his latest box office smash, some economists say Macklem finds himself in his own high-stakes circumstances with the central bank’s interest rate decision on Wednesday. Macklem’s mission is to chart a path for interest rates that keeps Canada’s economy afloat at a precarious moment without straying from its inflation-taming mandate. “It really is mission impossible,” said Andrew DiCapua, principal economist at the Canadian Chamber of Commerce ... CLICK HERE for the full story

... new targets play an important role in showing fiscal restraint, the government has argued. Bank of Canada Governor Tiff Macklem called the new guardrails “helpful” to monetary policy. But the government has systematically disregarded its past fiscal goals, raising doubts about its latest promise, according to a new report from the Business Council of Canada. “To meet their proposed deficit target they’ll either need much stronger-than-expected economic growth or they have make substantial program cuts ahead of an election" ... CLICK HERE for the full story