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Fed Chief: Brace Yourself! Interest Rates Set to Rocket

Watch Fed Chair Powell speak live during a policy forum in Washington


Federal Reserve Chair Jerome Powell will be speaking today at the Wilson Center’s Washington Forum on the Canadian Economy.

He will be joined by Bank of Canada Governor Tiff Macklem for a discussion on the current economic outlook, monetary policies in their respective countries, and the importance of the Canada-US economic relationship.

This event is significant because it comes at a time when markets anticipate the Fed to maintain its benchmark borrowing rate unchanged until September at the earliest.

The recent surge in inflation has prompted investors to adjust their expectations, which previously assumed that the Fed would progressively lower interest rates this year.

Higher-than-expected inflation figures in March, with consumer prices increasing by 3.5% year-over-year, have contributed to this shift in market sentiment.

The Fed is seeking greater assurance that inflation will stabilize around its target of 2%.

Today’s forum provides an opportunity for Powell and Macklem to convey the Fed’s and Bank of Canada’s perspectives on the economy, monetary policy, and the interconnectedness of the two nations’ economies.


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