\n<\/p>\n
Breadcrumb Trail Links<\/p>\n
Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action<\/p>\n
Published Aug 06, 2024<\/span> \u00a0\u2022\u00a0 Last updated 2\u00a0hours ago<\/span> \u00a0\u2022\u00a0 3 minute read<\/span><\/p>\n\n\n<\/button><\/p>\n\n\n\n\nYou can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n<\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/source><\/source><\/source><\/source><\/source><\/picture>U.S. Federal Reserve Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting at the Federal Reserve in Washington, DC, on July 31, 2024.<\/span> Photo by ROBERTO SCHMIDT\/AFP via Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n\nArticle content<\/h2>\nEconomists believe the United States Federal Reserve and the Bank of Canada may cut their policy rates faster than previously expected after fears of a potential U.S. recession sparked a wave volatility in global financial markets over the past week.<\/p>\nMonday\u2019s market sell-off \u2014 in which the Dow Jones industrial average plunged more than 1,000 points and more than US$6.4 trillion was wiped from global markets, according to Bloomberg News \u2014 came in the wake of a U.S. jobs report Friday that showed U.S. unemployment had risen unexpectedly to 4.3 per cent in July.<\/p>\n<\/section>\n\n\nAdvertisement 2<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\n\n\n<\/p>\n\nTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nSUBSCRIBE TO UNLOCK MORE ARTICLES<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nREGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\nCreate an account or sign in to continue with your reading experience.<\/p>\n\nAccess articles from across Canada with one account.<\/li>\nShare your thoughts and join the conversation in the comments.<\/li>\nEnjoy additional articles per month.<\/li>\nGet email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n\n\n\n\n\nSign In or Create an Account<\/h2>\nor<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nMonday\u2019s plunge prompted at least one observer, economist Jeremy Siegel of the Wharton School of Business, to call on the Federal Reserve to make an emergency rate cut of 75 basis points, but most thought such a move would be premature and instead predicted the pace of interest rate cuts will accelerate.<\/p>\n\u201cI think emergency rate cut talk is absurd to be honest and conditions would have to get vastly worse to merit an emergency cut,\u201d said Derek Holt, vice-president and head of Capital Markets Economics at Scotiabank. \u201cWe\u2019re nowhere close and we may already be stabilizing. Plus, it\u2019s August, so we must reserve some judgment given that it\u2019s a time of year when market volumes and volatility can behave erratically.\u201d<\/p>\nWhile markets showed signs of calming Tuesday, the soft U.S. economic data is something the Fed and the Bank of Canada will be watching closely as they make their next rate decisions.<\/p>\n\u201cOur take on this is that we did add an additional Fed and Bank of Canada cut,\u201d said Katherine Judge, economist with the Canadian Imperial Bank of Commerce. \u201cWe don\u2019t think an inter-meeting cut is likely, they (the Federal Reserve) would only do that in the case of a total meltdown in financial markets, which we are not seeing.\u201d<\/p>\n<\/section>\n\n\n\n\n<\/div>\n\nTop Stories<\/p>\nGet the latest headlines, breaking news and columns.<\/p>\n<\/div>\n<\/div>\n\n\nBy signing up you consent to receive the above newsletter from Postmedia Network Inc.<\/p>\n<\/div>\n\nThanks for signing up!<\/p>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Top Stories will soon be in your inbox.<\/p>\n<\/div>\nWe encountered an issue signing you up. Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\n<\/section>\n\n\nAdvertisement 3<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nStephen Brown, deputy chief North America economist at Capital Economics, thinks the depth of those cuts will really depend on if more U.S. data out next week show a continuation of declines.<\/p>\n\u201cIf we did see actual concrete signs of a U.S. recession taking hold, the bank would have to feed that through its own economic forecast,\u201d said Brown. \u201cI think in that scenario, if the Fed were to cut by 50 basis points or more at the forthcoming meeting, the Bank of Canada may decide to go quicker as well.\u201d<\/p>\nBank of Canada Governor Tiff Macklem told the Financial Post following a July decision to cut rates for the second consecutive meeting, that the central bank\u2019s balance of worries is shifting and that it is now concerned that inflation could fall below its two per cent target.<\/p>\nBeata Caranci, chief economist at Toronto-Dominion Bank, thinks markets overreacted on Friday and have to also adjust to this shift in risks to the economy.<\/p>\n\u201cThey\u2019re thinking through we are at a different point at the cycle now, so we had almost an entire year that the data was surprising to the upside and now we\u2019re on the other side of that,\u201d Caranci said. \u201cNow we\u2019re getting data that for the past three months has on average surprised to the downside and so there is that adjustment process happening in the pricing markets.\u201d<\/p>\n<\/section>\n\n\nAdvertisement 4<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nHolt thinks the Bank of Canada should remain cautious in how it pursues its rate cuts.<\/p>\n\u201cCutting too fast and too aggressively with very dovish guidance risks resurrecting inflationary forces,\u201d Holt wrote in a note to clients. \u201cThe economy is resilient, and inflation risk remains elevated, so be careful in crafting monetary policy.\u201d<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nTiff Macklem says the ‘balance of worries is shifting’<\/span><\/p>\n<\/li>\n <\/picture>\nMacklem: Canada must invest in its labour force<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
You can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n
<\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/source><\/source><\/source><\/source><\/source><\/picture>U.S. Federal Reserve Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting at the Federal Reserve in Washington, DC, on July 31, 2024.<\/span> Photo by ROBERTO SCHMIDT\/AFP via Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n\nArticle content<\/h2>\nEconomists believe the United States Federal Reserve and the Bank of Canada may cut their policy rates faster than previously expected after fears of a potential U.S. recession sparked a wave volatility in global financial markets over the past week.<\/p>\nMonday\u2019s market sell-off \u2014 in which the Dow Jones industrial average plunged more than 1,000 points and more than US$6.4 trillion was wiped from global markets, according to Bloomberg News \u2014 came in the wake of a U.S. jobs report Friday that showed U.S. unemployment had risen unexpectedly to 4.3 per cent in July.<\/p>\n<\/section>\n\n\nAdvertisement 2<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\n\n\n<\/p>\n\nTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nSUBSCRIBE TO UNLOCK MORE ARTICLES<\/p>\nSubscribe now to read the latest news in your city and across Canada.<\/p>\n\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman and others.<\/li>\nDaily content from Financial Times, the world’s leading global business publication.<\/li>\nUnlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\nNational Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\nDaily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\nREGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\nCreate an account or sign in to continue with your reading experience.<\/p>\n\nAccess articles from across Canada with one account.<\/li>\nShare your thoughts and join the conversation in the comments.<\/li>\nEnjoy additional articles per month.<\/li>\nGet email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n\n\n\n\n\nSign In or Create an Account<\/h2>\nor<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nMonday\u2019s plunge prompted at least one observer, economist Jeremy Siegel of the Wharton School of Business, to call on the Federal Reserve to make an emergency rate cut of 75 basis points, but most thought such a move would be premature and instead predicted the pace of interest rate cuts will accelerate.<\/p>\n\u201cI think emergency rate cut talk is absurd to be honest and conditions would have to get vastly worse to merit an emergency cut,\u201d said Derek Holt, vice-president and head of Capital Markets Economics at Scotiabank. \u201cWe\u2019re nowhere close and we may already be stabilizing. Plus, it\u2019s August, so we must reserve some judgment given that it\u2019s a time of year when market volumes and volatility can behave erratically.\u201d<\/p>\nWhile markets showed signs of calming Tuesday, the soft U.S. economic data is something the Fed and the Bank of Canada will be watching closely as they make their next rate decisions.<\/p>\n\u201cOur take on this is that we did add an additional Fed and Bank of Canada cut,\u201d said Katherine Judge, economist with the Canadian Imperial Bank of Commerce. \u201cWe don\u2019t think an inter-meeting cut is likely, they (the Federal Reserve) would only do that in the case of a total meltdown in financial markets, which we are not seeing.\u201d<\/p>\n<\/section>\n\n\n\n\n<\/div>\n\nTop Stories<\/p>\nGet the latest headlines, breaking news and columns.<\/p>\n<\/div>\n<\/div>\n\n\nBy signing up you consent to receive the above newsletter from Postmedia Network Inc.<\/p>\n<\/div>\n\nThanks for signing up!<\/p>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Top Stories will soon be in your inbox.<\/p>\n<\/div>\nWe encountered an issue signing you up. Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\n<\/section>\n\n\nAdvertisement 3<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nStephen Brown, deputy chief North America economist at Capital Economics, thinks the depth of those cuts will really depend on if more U.S. data out next week show a continuation of declines.<\/p>\n\u201cIf we did see actual concrete signs of a U.S. recession taking hold, the bank would have to feed that through its own economic forecast,\u201d said Brown. \u201cI think in that scenario, if the Fed were to cut by 50 basis points or more at the forthcoming meeting, the Bank of Canada may decide to go quicker as well.\u201d<\/p>\nBank of Canada Governor Tiff Macklem told the Financial Post following a July decision to cut rates for the second consecutive meeting, that the central bank\u2019s balance of worries is shifting and that it is now concerned that inflation could fall below its two per cent target.<\/p>\nBeata Caranci, chief economist at Toronto-Dominion Bank, thinks markets overreacted on Friday and have to also adjust to this shift in risks to the economy.<\/p>\n\u201cThey\u2019re thinking through we are at a different point at the cycle now, so we had almost an entire year that the data was surprising to the upside and now we\u2019re on the other side of that,\u201d Caranci said. \u201cNow we\u2019re getting data that for the past three months has on average surprised to the downside and so there is that adjustment process happening in the pricing markets.\u201d<\/p>\n<\/section>\n\n\nAdvertisement 4<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nHolt thinks the Bank of Canada should remain cautious in how it pursues its rate cuts.<\/p>\n\u201cCutting too fast and too aggressively with very dovish guidance risks resurrecting inflationary forces,\u201d Holt wrote in a note to clients. \u201cThe economy is resilient, and inflation risk remains elevated, so be careful in crafting monetary policy.\u201d<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nTiff Macklem says the ‘balance of worries is shifting’<\/span><\/p>\n<\/li>\n <\/picture>\nMacklem: Canada must invest in its labour force<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Economists believe the United States Federal Reserve and the Bank of Canada may cut their policy rates faster than previously expected after fears of a potential U.S. recession sparked a wave volatility in global financial markets over the past week.<\/p>\n
Monday\u2019s market sell-off \u2014 in which the Dow Jones industrial average plunged more than 1,000 points and more than US$6.4 trillion was wiped from global markets, according to Bloomberg News \u2014 came in the wake of a U.S. jobs report Friday that showed U.S. unemployment had risen unexpectedly to 4.3 per cent in July.<\/p>\n<\/section>\n
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or<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nMonday\u2019s plunge prompted at least one observer, economist Jeremy Siegel of the Wharton School of Business, to call on the Federal Reserve to make an emergency rate cut of 75 basis points, but most thought such a move would be premature and instead predicted the pace of interest rate cuts will accelerate.<\/p>\n\u201cI think emergency rate cut talk is absurd to be honest and conditions would have to get vastly worse to merit an emergency cut,\u201d said Derek Holt, vice-president and head of Capital Markets Economics at Scotiabank. \u201cWe\u2019re nowhere close and we may already be stabilizing. Plus, it\u2019s August, so we must reserve some judgment given that it\u2019s a time of year when market volumes and volatility can behave erratically.\u201d<\/p>\nWhile markets showed signs of calming Tuesday, the soft U.S. economic data is something the Fed and the Bank of Canada will be watching closely as they make their next rate decisions.<\/p>\n\u201cOur take on this is that we did add an additional Fed and Bank of Canada cut,\u201d said Katherine Judge, economist with the Canadian Imperial Bank of Commerce. \u201cWe don\u2019t think an inter-meeting cut is likely, they (the Federal Reserve) would only do that in the case of a total meltdown in financial markets, which we are not seeing.\u201d<\/p>\n<\/section>\n\n\n\n\n<\/div>\n\nTop Stories<\/p>\nGet the latest headlines, breaking news and columns.<\/p>\n<\/div>\n<\/div>\n\n\nBy signing up you consent to receive the above newsletter from Postmedia Network Inc.<\/p>\n<\/div>\n\nThanks for signing up!<\/p>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Top Stories will soon be in your inbox.<\/p>\n<\/div>\nWe encountered an issue signing you up. Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\n<\/section>\n\n\nAdvertisement 3<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nStephen Brown, deputy chief North America economist at Capital Economics, thinks the depth of those cuts will really depend on if more U.S. data out next week show a continuation of declines.<\/p>\n\u201cIf we did see actual concrete signs of a U.S. recession taking hold, the bank would have to feed that through its own economic forecast,\u201d said Brown. \u201cI think in that scenario, if the Fed were to cut by 50 basis points or more at the forthcoming meeting, the Bank of Canada may decide to go quicker as well.\u201d<\/p>\nBank of Canada Governor Tiff Macklem told the Financial Post following a July decision to cut rates for the second consecutive meeting, that the central bank\u2019s balance of worries is shifting and that it is now concerned that inflation could fall below its two per cent target.<\/p>\nBeata Caranci, chief economist at Toronto-Dominion Bank, thinks markets overreacted on Friday and have to also adjust to this shift in risks to the economy.<\/p>\n\u201cThey\u2019re thinking through we are at a different point at the cycle now, so we had almost an entire year that the data was surprising to the upside and now we\u2019re on the other side of that,\u201d Caranci said. \u201cNow we\u2019re getting data that for the past three months has on average surprised to the downside and so there is that adjustment process happening in the pricing markets.\u201d<\/p>\n<\/section>\n\n\nAdvertisement 4<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nHolt thinks the Bank of Canada should remain cautious in how it pursues its rate cuts.<\/p>\n\u201cCutting too fast and too aggressively with very dovish guidance risks resurrecting inflationary forces,\u201d Holt wrote in a note to clients. \u201cThe economy is resilient, and inflation risk remains elevated, so be careful in crafting monetary policy.\u201d<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nTiff Macklem says the ‘balance of worries is shifting’<\/span><\/p>\n<\/li>\n <\/picture>\nMacklem: Canada must invest in its labour force<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Article content<\/p>\n
Monday\u2019s plunge prompted at least one observer, economist Jeremy Siegel of the Wharton School of Business, to call on the Federal Reserve to make an emergency rate cut of 75 basis points, but most thought such a move would be premature and instead predicted the pace of interest rate cuts will accelerate.<\/p>\n
\u201cI think emergency rate cut talk is absurd to be honest and conditions would have to get vastly worse to merit an emergency cut,\u201d said Derek Holt, vice-president and head of Capital Markets Economics at Scotiabank. \u201cWe\u2019re nowhere close and we may already be stabilizing. Plus, it\u2019s August, so we must reserve some judgment given that it\u2019s a time of year when market volumes and volatility can behave erratically.\u201d<\/p>\n
While markets showed signs of calming Tuesday, the soft U.S. economic data is something the Fed and the Bank of Canada will be watching closely as they make their next rate decisions.<\/p>\n
\u201cOur take on this is that we did add an additional Fed and Bank of Canada cut,\u201d said Katherine Judge, economist with the Canadian Imperial Bank of Commerce. \u201cWe don\u2019t think an inter-meeting cut is likely, they (the Federal Reserve) would only do that in the case of a total meltdown in financial markets, which we are not seeing.\u201d<\/p>\n<\/section>\n
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Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\n<\/section>\n\n\nAdvertisement 3<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nStephen Brown, deputy chief North America economist at Capital Economics, thinks the depth of those cuts will really depend on if more U.S. data out next week show a continuation of declines.<\/p>\n\u201cIf we did see actual concrete signs of a U.S. recession taking hold, the bank would have to feed that through its own economic forecast,\u201d said Brown. \u201cI think in that scenario, if the Fed were to cut by 50 basis points or more at the forthcoming meeting, the Bank of Canada may decide to go quicker as well.\u201d<\/p>\nBank of Canada Governor Tiff Macklem told the Financial Post following a July decision to cut rates for the second consecutive meeting, that the central bank\u2019s balance of worries is shifting and that it is now concerned that inflation could fall below its two per cent target.<\/p>\nBeata Caranci, chief economist at Toronto-Dominion Bank, thinks markets overreacted on Friday and have to also adjust to this shift in risks to the economy.<\/p>\n\u201cThey\u2019re thinking through we are at a different point at the cycle now, so we had almost an entire year that the data was surprising to the upside and now we\u2019re on the other side of that,\u201d Caranci said. \u201cNow we\u2019re getting data that for the past three months has on average surprised to the downside and so there is that adjustment process happening in the pricing markets.\u201d<\/p>\n<\/section>\n\n\nAdvertisement 4<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nHolt thinks the Bank of Canada should remain cautious in how it pursues its rate cuts.<\/p>\n\u201cCutting too fast and too aggressively with very dovish guidance risks resurrecting inflationary forces,\u201d Holt wrote in a note to clients. \u201cThe economy is resilient, and inflation risk remains elevated, so be careful in crafting monetary policy.\u201d<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nTiff Macklem says the ‘balance of worries is shifting’<\/span><\/p>\n<\/li>\n <\/picture>\nMacklem: Canada must invest in its labour force<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Article content<\/p>\n<\/section>\n
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This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nStephen Brown, deputy chief North America economist at Capital Economics, thinks the depth of those cuts will really depend on if more U.S. data out next week show a continuation of declines.<\/p>\n\u201cIf we did see actual concrete signs of a U.S. recession taking hold, the bank would have to feed that through its own economic forecast,\u201d said Brown. \u201cI think in that scenario, if the Fed were to cut by 50 basis points or more at the forthcoming meeting, the Bank of Canada may decide to go quicker as well.\u201d<\/p>\nBank of Canada Governor Tiff Macklem told the Financial Post following a July decision to cut rates for the second consecutive meeting, that the central bank\u2019s balance of worries is shifting and that it is now concerned that inflation could fall below its two per cent target.<\/p>\nBeata Caranci, chief economist at Toronto-Dominion Bank, thinks markets overreacted on Friday and have to also adjust to this shift in risks to the economy.<\/p>\n\u201cThey\u2019re thinking through we are at a different point at the cycle now, so we had almost an entire year that the data was surprising to the upside and now we\u2019re on the other side of that,\u201d Caranci said. \u201cNow we\u2019re getting data that for the past three months has on average surprised to the downside and so there is that adjustment process happening in the pricing markets.\u201d<\/p>\n<\/section>\n\n\nAdvertisement 4<\/p>\n\n\n\n\nThis advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nHolt thinks the Bank of Canada should remain cautious in how it pursues its rate cuts.<\/p>\n\u201cCutting too fast and too aggressively with very dovish guidance risks resurrecting inflationary forces,\u201d Holt wrote in a note to clients. \u201cThe economy is resilient, and inflation risk remains elevated, so be careful in crafting monetary policy.\u201d<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nTiff Macklem says the ‘balance of worries is shifting’<\/span><\/p>\n<\/li>\n <\/picture>\nMacklem: Canada must invest in its labour force<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Stephen Brown, deputy chief North America economist at Capital Economics, thinks the depth of those cuts will really depend on if more U.S. data out next week show a continuation of declines.<\/p>\n
\u201cIf we did see actual concrete signs of a U.S. recession taking hold, the bank would have to feed that through its own economic forecast,\u201d said Brown. \u201cI think in that scenario, if the Fed were to cut by 50 basis points or more at the forthcoming meeting, the Bank of Canada may decide to go quicker as well.\u201d<\/p>\n
Bank of Canada Governor Tiff Macklem told the Financial Post following a July decision to cut rates for the second consecutive meeting, that the central bank\u2019s balance of worries is shifting and that it is now concerned that inflation could fall below its two per cent target.<\/p>\n
Beata Caranci, chief economist at Toronto-Dominion Bank, thinks markets overreacted on Friday and have to also adjust to this shift in risks to the economy.<\/p>\n
\u201cThey\u2019re thinking through we are at a different point at the cycle now, so we had almost an entire year that the data was surprising to the upside and now we\u2019re on the other side of that,\u201d Caranci said. \u201cNow we\u2019re getting data that for the past three months has on average surprised to the downside and so there is that adjustment process happening in the pricing markets.\u201d<\/p>\n<\/section>\n
Advertisement 4<\/p>\n
This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n\nArticle content<\/p>\nHolt thinks the Bank of Canada should remain cautious in how it pursues its rate cuts.<\/p>\n\u201cCutting too fast and too aggressively with very dovish guidance risks resurrecting inflationary forces,\u201d Holt wrote in a note to clients. \u201cThe economy is resilient, and inflation risk remains elevated, so be careful in crafting monetary policy.\u201d<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nTiff Macklem says the ‘balance of worries is shifting’<\/span><\/p>\n<\/li>\n <\/picture>\nMacklem: Canada must invest in its labour force<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Holt thinks the Bank of Canada should remain cautious in how it pursues its rate cuts.<\/p>\n
\u201cCutting too fast and too aggressively with very dovish guidance risks resurrecting inflationary forces,\u201d Holt wrote in a note to clients. \u201cThe economy is resilient, and inflation risk remains elevated, so be careful in crafting monetary policy.\u201d<\/p>\n\nRecommended from Editorial<\/p>\n<\/p>\n\n <\/picture>\nTiff Macklem says the ‘balance of worries is shifting’<\/span><\/p>\n<\/li>\n <\/picture>\nMacklem: Canada must invest in its labour force<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Recommended from Editorial<\/p>\n
<\/p>\n\n <\/picture>\nTiff Macklem says the ‘balance of worries is shifting’<\/span><\/p>\n<\/li>\n <\/picture>\nMacklem: Canada must invest in its labour force<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Tiff Macklem says the ‘balance of worries is shifting’<\/span><\/p>\n<\/li>\n <\/picture>\nMacklem: Canada must invest in its labour force<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Macklem: Canada must invest in its labour force<\/span><\/p>\n<\/li>\n<\/ol>\n<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/section>\nThere is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
There is precedent for emergency rate cuts. In 2001, the Federal Reserve made two unscheduled cuts following the tech bubble burst and the Sept. 11 terrorist attacks. There were also two unscheduled cuts following the 2008 financial crisis and most recently, during the COVID-19 pandemic.<\/p>\n
\u2022 Email: jgowling@postmedia.com<\/em><\/p>\nBookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Article content<\/p>\n<\/section>\n\nShare this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Share this article in your social network<\/p>\n<\/section>\n<\/div>\n\nEmergency rate cut unlikely despite recession fears: economists<\/a>\n2024-08-06 18:29:05<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
Breadcrumb Trail Links News Economy Monday\u2019s market plunge prompted at least one observer to call on the U.S. Federal Reserve to take action Published Aug 06, 2024 \u00a0\u2022\u00a0 Last updated…<\/p>\n","protected":false},"author":2,"featured_media":50192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-50191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=50191"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/50191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/50192"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=50191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=50191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=50191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}