Central Banks
Fed’s Hawkishness Casts Doubt on Bank of Canada’s Soft Landing
- Powell on track to hike rates more and tolerate slower growth
- Markets and economists don’t yet expect Macklem to follow suit
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The Federal Reserve’s efforts to step up its fight against inflation will cast doubt on the Bank of Canada’s ability to limit its own interest rate hikes.
At a decision Wednesday, Chairman Jerome Powell signaled Fed officials are poised to increase borrowing costs by more than expected, and are willing to tolerate much slower growth in the process.