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White House officials looking for way to 'open' economy without health catastrophe – CNN

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Such a step would pose dramatic risks, health experts warn, since Americans who have contracted coronavirus could spread it even if they’re not showing symptoms. Returning to crowded gatherings or bustling offices would drastically increase the spread.
Business leaders and some conservatives have countered that a virtual showdown of the American economy is causing its own kind of dramatic damage as millions of Americans lose their jobs and livelihoods.
The competing positions have taken hold on Trump’s coronavirus task force after Trump — having heard from business leaders and Republican allies — began agitating for a loosening of his guidelines over the weekend.
“Our country wasn’t built to be shut down. This is not a country that was built for this. It was not built to be shut down,” Trump said Monday, adding that after the 15-day “slow the spread” period ends, the administration would evaluate how to move forward.
Trump predicts 'this is going to be bad' but vows to reopen America
The discussions include a phased system based on age or geographic location, according to officials.
One option of a phased system that would see younger people — potentially under 40, according to one option — return to the workplace or business first, followed gradually by people slightly older until most of the country is back to normal.
Another option being considered is keeping in place restrictions only on vulnerable people and senior citizens, including on nursing homes, but allowing others to return as a group.
A third plan being considered would have Trump lift the federal guidelines but explicitly endorse individual governors acting however they see fit for their own states, including saying that some states should remain under stricter orders than others.
A fourth idea is to keep in place some federal guidelines but change others to allow states more leeway, so that places where the outbreak isn’t as severe can open.
One other idea is to target specific types of workers to return to work, including people who drive themselves and don’t work in large groups.
The roster of options hadn’t been presented to Trump as of Monday evening and officials were expected to keep developing options this week ahead of next Monday’s deadline.
The aim of whatever plan is chosen is to achieve Trump’s goal of getting the economy going while avoiding the health nightmare that practically every expert — inside and outside the White House — is warning of.
Trump’s political aides are aware some compromise will be needed to avoid Trump ripping off the guidelines entirely without any attempt the blunt the health effects.
To that end, aides are also mining the data to see if there is any evidence to present Trump that might show the current self-isolating measures are working in the US, even though the nature of the virus and the current situation make it hard to detect such a pattern this soon.
The thinking goes that once Trump sees his guidelines having an effect, he might be willing to give them more time.
Aides realized after a Sunday night meeting at the White House that Trump appeared intent on lifting the guidelines quickly, which led to a realization that alternate options would need developing. Discussions continued during the day on Monday as Trump’s economic advisers, including Steven Mnuchin and Larry Kudlow, channeled the views they were receiving from the business community that keeping the country shut down wasn’t worth the economic pain.
The doctors on Trump’s team — including Dr. Anthony Fauci — seem to disagree.
“If it were up to the doctors, they may say let’s keep it shut down — let’s shut down the entire world,” Trump said Monday.
Dr. Deborah Birx, White House coronavirus response coordinator, said Tuesday the task force has been looking into being “laser focused” in battling the pandemic.
“The question is really can we be laser focused rather than generic across the country?” Birx told NBC’s Savannah Guthrie on the “Today” show, suggesting a region-by-region approach.
“In other words, can we use our data in a laser-focused granular way to really look at what’s happening on the ground and adjust our public health messages based on what is actually needed by the number of cases and the work that we’re doing with the communities,” Birx said.

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Economy

Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

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TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Canada’s inflation rate hits 2% target, reaches lowest level in more than three years

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OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.

The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.

Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.

The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.

“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.

Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.

“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.

The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.

The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.

A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.

Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.

Its key lending rate currently stands at 4.25 per cent.

CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.

The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.

This report by The Canadian Press was first published Sept. 17, 2024.

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Federal money and sales taxes help pump up New Brunswick budget surplus

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FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

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