The Daily Chase: Inflation surges most since 1983; Trans Mountain gets another look
BNN Bloomberg
Inflation was even hotter than expected last month.
Reaction and insight into the implications for the BoC started with BMO Capital Markets Senior Economist Sal Guatieri at 8:30 a.m. (who noted inflationary pressure is bound to heap more pressure on employers to ramp up wages, lest they face strike action among unions). We’ll have plenty of voices throughout the day, bookended by ex-Deputy Prime Minister and Finance Minister John Manley at 4:30 p.m.; he might also have something to say about Scotia’s report this week that laid some blame for inflation at the feet of the federal government. Also of note: Bank of Canada Senior Deputy Governor Carolyn Rogers is speaking this morning at a Globe and Mail event; we’ll monitor for any hint of what to expect in the next policy decision.
POWELL IN THE HOT SEAT AND INVESTORS UNNERVED
Our buffet of inflation coverage extends far beyond Canada this morning. Federal Reserve Chair Jerome Powell begins two days of Congressional testimony on the Fed’s Monetary Policy Report. We should expect him to stick close to last week’s talking points; and (at the risk of editorializing) the chance of a major news breakthrough might be overwhelmed by the prospect of political grandstanding by lawmakers in a mid-term election year. Meanwhile, U.S. President Joe Biden has called on Congress to implement a three-month gas tax holiday. Inflation and recession fears are again torpedoing investor sentiment this morning: U.S. futures are all deep in the red, West Texas Intermediate crude has been down as much as 5.8 per cent, and the U.S. dollar is rallying against most major currencies (including the loonie, which slipped below US$0.77).
