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Canada to Announce Response to U.S. Steel and Aluminum Tariffs

The Canadian government is set to unveil its response to the United States' recent imposition of 25% tariffs on steel and aluminum imports. Finance Minister Dominic LeBlanc, Foreign Affairs Minister Mélanie Joly, and Industry Minister François-Philippe Champagne will address the nation in a press conference on Parliament Hill this morning. The tariffs, which came into effect at midnight, mark a significant escalation in trade tensions between the two countries. The U.S. administration, under President Donald Trump, has justified the move as part of its broader strategy to realign global trade. In retaliation, Canada has already imposed counter-tariffs on $30 billion worth of U.S. goods and is expected to announce further measures to protect Canadian industries and workers. The response is anticipated to focus on minimizing the impact on Canadian businesses while ensuring a strong message is sent to the U.S. about the importance of fair trade practices. The announcement comes amid o...
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Persistent Inflation Halts Interest Rate Cuts


The U.S. Federal Reserve has resolved to maintain interest rates at a two-decade peak of approximately 5.3%, citing the need for “greater confidence” that inflation is decelerating sustainably towards its 2% target. Despite recent data suggesting inflation was on the decline, several reports have indicated that price increases and economic growth are still more robust than anticipated, challenging the Fed’s expectations.

Key Points:

  • Inflation’s Stubbornness: Recent months have not shown significant progress towards the 2% inflation goal.
  • Rate Cut Projections Shift: Previously expected rate cuts in 2024 may be delayed, with financial markets anticipating only one reduction later this year.
  • Economic Optimism: Chair Jerome Powell expects inflation to decrease over the year, despite the current economic challenges.
  • Policy Adjustments: The Fed plans to slow down the unwinding of its COVID-era bond purchases, aiming to reduce its holdings at a gentler pace.

This stance comes amidst concerns that persistent inflation could jeopardize President Joe Biden’s re-election campaign, as many Americans express dissatisfaction with the economy’s performance, particularly the pace of price increases. The Fed’s cautious approach reflects its commitment to ensuring inflation targets are met before introducing any rate cuts, which would eventually lead to lower borrowing costs for consumers and businesses.

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