Concerns about the U.S. economy overheating and what it means for Canada

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):

 

RealAgriculture News Team

A team effort of RealAgriculture's videographers and editorial staff to make sure that you have the latest in what is happening in agriculture.

Trending

Wheat prices jump into August — This week in the grain markets

This week, winter wheat prices touched a three-year high, but it didn’t last. Chicago SRW wheat prices for September 2018 gained 5 per cent or about 26 cents US/bushel to close at $5.56. While the December 2018 contract was up 5.4 percent — or nearly 30 cents — to finish a tad under $5.80. In…Read more »

Related

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.