Economists have endorsed a September interest rate cut by the U.S. Federal Reserve as inflation falls to its lowest level since March 2021. Dr. James Thorne, Chief Market Strategist at Wellington-Altus Private Wealth, criticized the Fed for its delayed action, arguing that the policy mistake has already been made. Thorne emphasized the need for rate cuts to achieve the long-term inflation target of 2.5% and questioned Fed officials for threatening further rate hikes. Concerns about consumer market strength were highlighted by disappointing reports from companies like Nike and Walgreens.
Why Canada’s Economy is on the Ropes
The Canadian economy is facing significant challenges as the private sector struggles under the weight of high government spending during the COVID-19 pandemic and rising interest rates.
While the public sector has grown substantially, creating an illusion of stability, private sector growth has stagnated, and consumer debt levels remain dangerously high.