Highlights of the Week – November 27
United States
• In a quiet week for markets, there is plenty to be thankful for in the U.S. economy. In 2017 growth has accelerated and unemployment is at a 17-year low. The economy is showing signs of rebounding from the impacts of the devastating hurricanes.
• Fed Chair Janet Yellen announced that she will resign her seat on the Board when Jerome Powell is sworn in as Chair. America can be thankful for her deft management of monetary policy over the past four years.
• Congress returns after the thanksgiving break next week, and has three weeks to reach a compromise on tax legislation if it wants to achieve its Christmas deadline. A deal is within reach if Republicans are willing to compromise on the size of tax cuts.
Canada
• It was generally a weak week, with wholesale and retail trade volumes both falling in September. The latest headlines from the NAFTA discussions suggest that negotiators remain far apart on a number of key issues. Concluding the talks this winter appears optimistic at best at this time.
• We expect third quarter GDP growth to be reported at 1.7% next Friday, a marked deceleration from recent quarters. Most important in the report will be the signals regarding momentum heading into the end of the year. A weak signal would likely extend the Bank of Canada’s current pause in interest rate normalization.
For further information, please contact:
John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5446
[email protected]
