The ‘Goldilocks’ scenario won’t go away – and it’s getting a boost from upbeat economic reports
Despite the threat of a recession this year, major economies are clinging to the possibility of a soft landing that avoids a painful downturn and widespread layoffs, something that’s typically proved elusive when central bankers raise interest rates to tameIn recent weeks, there have been hopeful signs. Labour demand is easing in Canada, notably through fewer job vacancies, rather than major downsizings. Wage pressures seem to be abating.
Mr. Poloz said this spate of high inflation is different from past iterations, which were usually caused by excess demand – “too many dollars chasing too few goods.” Instead, much of the recent runup in consumer prices can be attributed to soaring energy prices and supply-chain disruptions. Now, those factors are fading away, reflected in shorter delivery times and shipping costs that dropped to prepandemic levels.
In this country, what’s changing is labour demand. The number of job vacancies has tumbled by more than 200,000 from peak levels in the spring. The hope, among many economists, is that companies will dampen their hiring plans, but spare their workers from layoffs. In turn, that is helping consumers. Despite higher interest rates that are meant to curb demand, consumer spending hasn’t fallen dramatically. Purchases are waning in some areas – for instance, people are buying far fewer kitchen appliances than early in the pandemic – but are picking up in others, such as vehicles and travel.
“I actually think the risk – if we’re going to be surprised – is that the Bank [of Canada] and the Fed have to do more because the consumer is so resilient,” Mr. Porter said.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Alice Darling’ shows complexity of female friendships and how they provide salvation - Terrace Standard‘Alice Darling’ shows complexity of female friendships and how they provide salvation
Read more »
![Bitcoin [BTC]: The rest of the month may not be fruitful, here is why](https://i.headtopics.com/images/2023/2/4/cryptoamb/bitcoin-btc-the-rest-of-the-month-may-not-be-fruit-bitcoin-btc-the-rest-of-the-month-may-not-be-fruit-1621909699988803585.webp?w=640)
Bitcoin [BTC]: The rest of the month may not be fruitful, here is whyBTC’s Realized Capitalization showed that the leading coin is now overbought. On-chain assessment hints at a price drawback in the coming days. According to CryptoQuant analyst Axel Adler Jr, due to the bullish nature of the general cryptocurrency market since the year began, the Realized Capitalization metric for many assets grew significantly in the past […]
Read more »
ALLISTER AALDERS: Wind chill and why extreme cold should be taken seriously | SaltWireOver the last few days, and during winter in general, there’s often lots of talk about wind chill. The current wind chill index was adopted in 2001 when ...
Read more »
Why the Japanese Canadian Cultural Centre must be savedRaymond Moriyama’s building is an important work of architecture with social significance
Read more »
Alberta family still waiting for answers on why they weren't notified of son's deathVictoria Police Chief Del Manak phoned the Griers this week to offer his condolences and assure them the file was being reviewed
Read more »
Why a new Alzheimer's drug is having a slow U.S. debutThe first drug to show that it slows Alzheimer’s is on sale, but treatment for most patients is still several months away.
Read more »