(Bloomberg) — Treasury Secretary Janet Yellen said a soft landing is possible for the US economy thanks to its strong labor market and the absence of balance sheet problems like the ones that preceded the global financial crisis.
Her comments, delivered Friday to reporters at a briefing on the sidelines of the Group of 20 meeting of finance ministers and central bank governors in Bengaluru, India, echo her more positive tone on the global economic outlook outlined a day earlier.
“I see a soft landing as being a possible outcome and the one that I hope we will be able to achieve,” Yellen said. “The economy is fundamentally in good shape, and inflation is coming down if you measure it on a 12-month basis.”
She cautioned that labor markets remained tight and core inflation, the measure that excludes food and energy, remains higher than is consistent with the 2% target, adding that “there’s still work to do to get it down.”
Recent indicators have shown a strong start for the economy in 2023, with job growth, retail sales and service-sector activity all accelerating in January. The monthly pace of consumer-price gains also picked up.
Meanwhile, US economic growth in the fourth quarter was weaker than previously estimated, Commerce Department data showed, reflecting a downward revision to consumer spending as the Federal Reserve’s preferred inflation figures were revised higher.
Yellen also sounded optimistic that a way forward could be found to address concerns raised by allies including the European Union over access to raw materials used in batteries, saying that trade treaties between the US and partners focused on so-called critical minerals probably won’t require Congressional approval.
President Joe Biden’s administration has focused on such deals to lessen China’s role in supply chains for green energy technology, particularly those needed in electric vehicle batteries such as lithium and cobalt. More narrowly, they would allow partner countries to tap some benefits for automakers in the recent Inflation Reduction Act.
The US climate package includes about $500 billion in new spending and tax breaks over a decade to promote US manufacturing and services and gives certain exceptions for countries that have free-trade agreements with the US like Canada, Mexico and Australia.
Its focus on boosting American industry has angered trade partners from Asia and Europe who said it discriminated against their companies, particularly carmakers. The EU has been pushing for an agreement that would grant it equivalent status as a trade-accord partner of the US, while some of the bloc’s top officials are heading to Washington next month hoping to smooth over tensions tied to the plan.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
