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- “The labor market remains very strong” as the unemployment rate remains under 4% for the longest period in more than half a century, Federal Reserve Chair Jerome Powell said on Tuesday. Even with this strength the labor market has been moving into better balance, he said.
- However, recent data demonstrates a lack of progress on inflation heading toward the Fed’s 2% target. That means it will likely take longer for the central bank to gain confidence that inflation is headed lower, he said at the Washington Forum on the Canadian Economy.
- Bank of Canada Governor Tiff Macklem noted that Canada’s central bank doesn’t necessarily follow the Fed’s lead. “We don’t need to do what the Fed does. We can do what Canada needs.”
- He noted that Canadian inflation trends appear to be heading in the right direction. Headline inflation came in close to 3%, as expected, but measures of core inflation ticked down, indicating inflation trends are heading in the right direction, he said at the Washington Forum on the Canadian Economy.
- Developing… check back for updates.
