“We’ve over-relied on priming demand and not spent enough time on the tougher decisions of structural reform and making the investments that we need to actually grow the economy over the long term,” Bank of Canada Governor Tiff Macklem told me in Saskatoon #cdnecon

www.bloomberg.com/news/article...

The long-anticipated fiscal plan will put a price tag on Prime Minister Mark Carney’s plans to boost the country’s expenditures on defense, housing and infrastructure.

@erikhertzberg.bsky.social

To me, the biggest surprises today were:
- Wilkinson dropped entirely from cabinet
- Carlos Leitão (former Quebec finance minister) not in
- Labour no longer a full cabinet job, downgraded to junior portfolio. Federal sectors have seen a ton of labour disruption recently

Economists at one of Canada’s biggest lenders are raising doubts about the fiscal plans offered by the leading parties in the country’s election, @erikhertzberg.bsky.social and Mario Baker Ramirez report.

www.bloomberg.com/news/article...

The Bank of Canada is likely to hold interest rates steady on Wednesday as officials take stock of the damage posed by US President Donald Trump’s trade war

origin.www.bloomberg.com/news/article... @erikhertzberg.bsky.social

Canada’s fiscal position is set to worsen as the country’s two leading political parties vie to win an election by promising tax cuts and measures to protect industries from US President Donald Trump’s tariff barrage.

www.bloomberg.com/news/article... @erikhertzberg.bsky.social

New: Canada is now on a path to crank up military spending.

Where should the money go, and how does it square with its deep integration with the US?

A deep dive including interviews with experts, a former forces chief and ex-defense minister:

www.bloomberg.com/news/article...

Dominic LeBlanc said he believes incoming US Commerce Secretary Howard Lutnick will provide Trump with advice on the “global trade balance circumstance,” which would reveal Canada’s relatively small surplus.

#cdnecon #cdnpoli

Trudeau's government is preparing a huge range of tariffs on US imports if Trump proceeds with his economy-wide 25% levy, sources say. This is not like 2018, where Canada only targeted a few strategic goods with retaliation. www.bloomberg.com/news/article...

The Governor General's power and authority is limited at the best of times. It's important to keep that in mind.

She can encourage the PM to demonstrate he has confidence, but that assumes that he's willing to meet with her.

Export taxes on major commodities the US imports from Canada such as oil, uranium and potash are on the table as a retaliation measure if Trump imposes wide-scale tariffs, sources tell Bloomberg. It's a last resort option, but it's real. www.bloomberg.com/news/article...

"BOC Delivers Jumbo Cut But Suggests More Easing Far From Certain" via @erikhertzberg.bsky.social

www.bloomberg.com/news/article...

Justin Trudeau signaled a return to his free-spending playbook as inflation wanes and an election looms, accelerating a bond selloff due to expectations of faster growth and a deeper deficit. Story by @erikhertzberg.bsky.social www.bloomberg.com/news/article...

Canadians broadly support Trudeau’s plan to drastically slash immigration targets, but the move has done little to boost his waning popularity, a new poll suggests. Just over half of the respondents said it has no impact on their impressions of the PM.