Lates News

Blake Gwinn, the head of interest rate strategy at Royal Bank of Canada, said that tariffs could lead to increased inflation in the United States before damaging economic growth. This could potentially delay the Fed's decision to cut interest rates. "Our assumption is that inflation will first impact, with the drag on the economy coming later," he said. The current uncertainty surrounding tariff policies has made it difficult for businesses to make decisions on layoffs or production cuts. "This delays expectations on when the Fed will react," he added. Royal Bank of Canada predicts that the Fed will cut interest rates three times this year, starting in September.