Low unemployment, major tax cuts, and looming trillion dollar deficits — the U.S. economy is hot, with growing concerns that it may be at risk of over-heating.
Increasing odds of higher inflation and interest rates have stoked a pullback and volatility in the stock market after the Dow climbed to record highs in late January.
The Canadian economy has also been strong, although the Statistics Canada jobs report on Friday was surprisingly negative. The agency said 88,000 jobs were shed in January, a major deviation from November and December, when a total of 145,000 jobs were added.
What does the U.S. economic climate mean for Canada? What should we expect with the Canadian dollar? How many interest rate hikes will we see in 2018?
Craig Klemmer, principle ag economist with Farm Credit Canada, sat down with Shaun Haney in Regina on Thursday to discuss some of these big questions, including what a move higher for the loonie ends up costing grain farmers (per acre):