This past week, the US Federal Reserve (Fed) announced that it would keep the benchmark interest rate at 5.5%, a move that was widely expected. However, the Fed also hinted at the possibility of a rate cut in September, as inflation cools and the labour market shows signs of slowing. The Federal Open Market Committee (FOMC) unanimously agreed to maintain the federal funds rate in the 5.25% to 5.5% range, where it has been for the past year.
Category Archives: Updates
Weekly Update for the week ending July 26, 2024
As expected, the Bank of Canada (BoC) cut its interest rate by 0.25% on Wednesday, marking the second consecutive rate reduction. The rate now sits at 4.5%. This decision was driven by weakening consumer spending and economic growth, including rising unemployment and declining job creation. As well, inflation continues to decline and is now within the BoC’s target range of 1% to 3%. BoC Governor Tiff Macklem indicated a potential for further rate cuts if inflation continues to decline. The bank is now forecasting inflation to reach 2.4% by the end of the year.
Let’s take a closer look at what this means for Canadians.
Weekly Update for the week ending July 19, 2024
This past week, many of the big-name mega-cap technology companies (companies with market capitalization exceeding $200 billion which represents the total value of all outstanding shares) that have driven the indexes to record heights all year long lost favour with investors. In fact, much of this past week’s declines can be attributed to these same companies. This includes Alphabet (NASD: GOOGL), Amazon.com (NASD: AMZN), Apple (NASD: AAPL), Microsoft (NASD: MSFT) and Nvidia (NASD: NVDA).
Weekly Update for the week ending July 12, 2024
Mr. Powell goes to Washington In a week of high anticipation, US Federal Reserve (Fed) Chair Jerome Powell took center stage in Congress, providing crucial updates on the future of rate cuts. During his Senate testimony on Tuesday, Powell expressed optimism as inflation approached the Fed’s 2% target, signaling potential for future rate cuts. He […]
Weekly Update for the week ending July 5, 2024
As we pass the halfway mark of the year, it is encouraging to know that the stock market typically performs better during the summer months, with July often cited as one of the strongest. Several compelling reasons contribute to this trend. Let’s take a look.
Weekly Update for the week ending June 28, 2024
I am very happy with the nearly 19% gain in Microsoft’s (NASD: MSFT) share price since the start of the year. Normally, that would be a fantastic return for six months. But compared to the performance of another tech giant – Nvidia (NASD: NVDA) – it is modest. Nvidia is experiencing extraordinary times, thanks to […]