Donald Trump’s tariff policies suffered their strongest political blow yet with the Republican-led US House passing legislation aimed at ending the president’s levies on Canadian imports.

Wednesday’s vote represents an increase in political pressure to change course on Trump’s signature economic policy just months before the midterm elections, including by forcing swing-district Republicans affected by the tariffs to weigh when or if to cross the president by voting against his agenda. (BBG – Continue Reading) 

Senior Bank of Canada policymakers identified the pending US-led review of the existing North American trade treaty as an “important risk” to the economic outlook, according to minutes published Wednesday. 

The seven members of the central bank’s governing council, led by Gov. Tiff Macklem, said the risks to the outlook have moved higher, given renewed geopolitical tensions and elevated uncertainty over Trump administration trade policy. (WSJ – Continue Reading) 

Australia’s central bank stands ready to raise interest rates further if inflation proves persistent, Governor Michele Bullock said, stressing that the board remains cautious and is yet to decide whether further tightening is warranted. 

The Reserve Bank chief told a panel of senators on Thursday at Parliament House in Canberra that inflation running “with a three in front of it” is unacceptable. That echoed comments from her deputy Andrew Hauser who a day earlier warned that inflation is still “too high” and remains a significant challenge for the rate-setting board. (BBG – Continue Reading) 

Federal Reserve policymakers look likely to keep interest rates on hold for longer after data on Wednesday showed the U.S. job market began 2026 on better footing than expected, but revisions showing payroll growth all but stalled last year will keep alive concerns about a weakening labor market. 

The Bureau of Labor Statistics, in its shutdown-delayed report, said nonfarm payrolls rose by 130,000 jobs in January, compared with the gain of 70,000 economists in a Reuters poll had forecast. The unemployment rate ticked down to 4.3% from 4.4%. 

Fed policymakers voted 10-2 last month to keep the central bank's benchmark overnight interest rate in the 3.50%-3.75% range, after cutting it at each of the last three meetings of 2025. The bigger-than-expected job gain in January may give them some assurance that the labor market is stabilizing, and allow their attention to shift towards controlling inflation, which remains above the Fed's 2% target. (RTRS – Continue Reading)