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Economy And Policy

All articles tagged with #economy and policy

economy-and-policy1 month ago•34 min saved

Canada Strikes Back With Counter-Tariffs, Risking a Broader Trade Fight

Canada plans to slap 15% to 50% tariffs on hundreds of US goods—including steel items, motorcycles, cosmetics, and cheese—starting Tuesday, as Prime Minister Carney seeks to pressure Washington to restart talks after a collapse of a broader deal. The move targets US exporters and could hit battleground states like Michigan and Ohio, signaling a deeper US‑Canada trade clash. Washington has warned against retaliation and floated possible further actions, while analysts estimate the combined effect of Canadian counter-tariffs and US protections could shave roughly 0.3% from Canada’s output. Public opinion polls show broad support for Carney’s stance, and both sides have signaled a willingness to negotiate, but a durable agreement remains uncertain and timing unclear.

via Yahoo Finance|

#autos-and-steel #canada-us-relations #durable-agreement

economy-and-policy1 month ago•18 min saved

Russia’s War Economy Risks Going Out of Balance, Titov Warns

Putin’s international development envoy Boris Titov warned that Russia’s economy could go “berserk” if policy focuses exclusively on the military-industrial complex, stressing the need to balance military needs with civilian sectors as Moscow presses to win in Ukraine. He noted signs of strain from higher taxes, property redistribution, and business contributions to finance the war, and described “berserk mode” as time-limited. With growth expected to around 0.4% this year and civilian sectors stagnating, Ukrainian attacks on economic targets could further slow the economy. Titov’s comments come ahead of Putin’s Far East economic forum amid election-season tensions and rumors of mobilization, signaling Kremlin concern about war-related economic pressures.

via Yahoo Finance|

#boris-titov #economy #economy-and-policy

economy-and-policy1 month ago•18 min saved

Forecasts Over Promises: Posen Urges Clear Fed Outlook Amid Sticky Inflation

Peterson Institute economist Adam Posen argues it’s acceptable for the Fed to avoid committing to a path via forward guidance, but it must publish a credible forecast about inflation and the economy. Fed Chair Kevin Warsh signaled that inflation remains the top concern and that the FOMC may need to raise rates again, possibly twice this year, though timing could slip into December/January due to elections. Posen warns that without a forecast, discussions become vague, and he anticipates inflation will persist, implying more tightening may be needed than markets currently expect.

via Yahoo Finance|

#economy-and-policy #fed-policy #forecast

economy-and-policy1 month ago•21 min saved

KC Fed official: inflation still too hot, policy too loose ahead of Jackson Hole

Kansas City Fed President Jeff Schmid says inflation remains too hot and the Fed’s policy rate is too accommodative, arguing the central bank hasn’t achieved its 2% mandate and that more action could be warranted. He cites energy and broad demand as drivers, notes July’s PCE inflation core at 3.3% (0.2% month over month), and says the question is whether policy is too accommodative or restrictive. Although not a voting member this year, he would have sided with inflation-focused dissents at the July meetings and signals openness to different rate-paths (including a possible 25 or 50 basis-point move) depending on incoming data. He also highlights Fed data and communication initiatives, the balance-sheet review, and potential changes in meeting frequency as part of ongoing reforms, while downplaying tariff impacts and stressing the need for better real-time data beyond the PCE.}{

via Yahoo Finance|

#economy-and-policy #federal-reserve #inflation

economy-and-policy1 month ago•20 min saved

Canada retaliates with $20B tariff push as trade dispute intensifies

Canada announced dollar-for-dollar counter-tariffs on about $20 billion of U.S. imports, with rates of 15%, 25%, and 50% on around 700 products, effective Sept. 8, in response to President Trump's latest tariffs. Ottawa also unveiled a C$7.5 billion aid package to help affected businesses and workers, including loans of up to C$5 million from the Business Development Bank of Canada and a 36-month repayment deferral. The move heightens tensions ahead of the U.S. midterm elections and targets sectors like wood products and electronics, aiming to pressure the U.S. while shielding Canadian jobs.

via Yahoo Finance|

#canada-us-trade #economic-impact #economy-and-policy

economy-and-policy2 months ago•14 min saved

Fed policymaker says inflation will require multiple rate hikes

Cleveland Fed president Beth Hammack says inflation will require more than one 25bp rate hike; current rates aren’t meaningfully restraining growth, so acting now is prudent to hit the 2% target. She notes core PCE around 3.3% in June and CPI near 2.5–2.6%, and emphasizes that markets should complement, not substitute, Fed action.

via Yahoo Finance|

#economy-and-policy #federal-reserve #inflation

economy-and-policy2 months ago•21 min saved

Cheap Bills, Big Burden: The Hidden $1.45T Treasury Shortfall

A Fortune report reveals the Treasury Borrowing Advisory Committee’s warning of a $1.45 trillion funding shortfall in fiscal 2027–28 as the government finances a roughly $2 trillion annual deficit. It notes that Scott Bessent has leaned on cheap short-term bills to keep borrowing costs down, but that approach leaves the government more exposed to inflation and rising rates. The piece ties this tactic to Janet Yellen’s prior policy and to economists Miran and Roubini, and warns of two looming waves of long-term debt as the Fed reduces its balance sheet, potentially stressing markets even as debt-service costs outpace major priorities like defense.

via Yahoo Finance|

#deficit-financing #economy-and-policy #inflation-risk

economy-and-policy2 months ago•13 min saved

Trump Signals Push to Reshape Fed Through Warsh Talks

Bloomberg reports that President Trump has been calling Federal Reserve Chair Kevin Warsh since his confirmation, signaling an effort to influence the Fed while publicly affirming its independence; conversations reportedly focus on Warsh’s views and the economy, not on specific policy moves, with the White House saying Trump is giving Warsh space to restore confidence in decision-making amid inflation, energy prices and global tensions.

via Yahoo Finance|

#economy-and-policy #fed #independence