Economy

U.S. economy, Fed policy in ‘good position,’ Daly says

Published

4 years ago

October 14, 2020

SAN FRANCISCO (Reuters) – The U.S. Federal Reserve’s vow to keep interest rates near zero for what could be years is “appropriate” for now, though more action could be needed as the recovery proceeds, San Francisco Fed President Mary Daly said on Tuesday.

“We’ve got the economy and the policy in a good position right now,” Daly told reporters on a call. “I see us as well positioned to weather this storm we are in, and it remains to be seen if more will be needed … I’ll continue to watch the data and see if adjustments will be necessary.”

The Fed slashed interest rates to zero in the face of the coronavirus pandemic and began pumping trillions of dollars into financial markets, extraordinary actions that have helped fuel stock price gains even as the real economy struggles to regain its footing. Millions of Americans are still out of work.

The situation, Daly said in a talk Tuesday hosted virtually by the University of California, Irvine, “seems unfair (and) another example of Wall Street winning and Main Street losing.”

But keeping interest rates at their current near-zero levels until the economy returns to full employment, as the Fed has promised it will do, will in time create more jobs and help reduce inequality, Daly said.

And while raising rates earlier might keep the already rich from adding further to their wealth, she suggested, it would also exacerbate inequality by making jobs for everyone else even harder to come by.

“I am not willing to trade millions of jobs … to keep the stock market from going up for the few who have those holdings,” she said.

(Reporting by Ann Saphir; Editing by Sandra Maler and Stephen Coates)

Source:- TheChronicleHerald.ca

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Economy

PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

Published

7 hours ago

October 17, 2024

Anne Joseph

OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

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

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Economy

Statistics Canada says levels of food insecurity rose in 2022

Published

1 day ago

October 16, 2024

Anne Joseph

OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

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

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Economy

Statistics Canada says manufacturing sales fell 1.3% to $69.4B in August

Published

1 day ago

October 16, 2024

Anne Joseph

OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.

The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.

The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.

Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.

Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.

Overall manufacturing sales in constant dollars fell 0.8 per cent in August.

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

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