The Federal Reserve and the Bank of Canada both made the moves many markets had been anticipating with each cutting its policy rate by twenty-five basis points at their mid-September meetings. In the U.S., the Fed lowered its range to 4.00-4.25%, citing weak job growth and concerns over labour market risks. In Canada, the BoC dropped its overnight target to 2.50%, with Governor Macklem noting mounting slack in employment and income alongside easing inflation pressures. (Source: Investopedia, September 19, 2025). The markets reacted positively to the cuts, with indications that the banks are willing to shift focus to support growth. Historically, September has been one of the weakest months for market performance, with more volatility, so we have been pleasantly surprised with the results thus far month to date; however, investors will be watching closely whether the positive momentum from policy support can withstand the traditional seasonality weakness -we would not be surprised if the markets do provide some weaker results for the rest of the month.
We remain intrigued by the resilience of the US economy despite the challenges they are starting to experience, such as jobs growth weakening and the continued stickiness of inflation. The week, both the PCE and CPI figures will be released for August, and it will place US inflation front and centre again, providing some key insights into whether inflation is stabilizing enough to allow further rate cuts without risking overheating. In Canada, new GDP data arrives on Friday, and we will get final growth numbers for July and preliminary data for August. We have had three straight months of falling GDP, largely because of weakness in manufacturing caused by trade uncertainty. Most economists consider a recession to be underway when we see two straight quarters of declining GDP, but we are not at that stage just yet.
Further to Canada’s struggles with productivity, we have an excellent article that provides three factors that are stifling Canada’s economic growth and prosperity. Have a read below.
Nvidia and Intel recently signed a landmark agreement that will boost both chip makers in the short (and potentially long term). We have an excellent article that highlights the details of the deal and what means to investors.
There is a strong likelihood that you have never heard of the movement called FIRE. It stands for Financial Independence Retire Early and it is a philosophy that is growing in popularity. We have an interesting article on a recent summer camp for those like-minded individuals looking to escape the work force forever. Check it out!
By now, you have probably heard of ChatGPT and may have even become a regular user. How are people actually using it? We have the answers in the attached article based on the company that owns and runs ChatGPT - OpenAI.
For those feeling tired and worn out after a busy summer and are now facing “Stresstember,” we have an article that can help with tips to minimize your fall fatigue. Have a look!
Have an amazing week everyone!
For those clients with children or grandchildren (or themselves) looking to buy their first home, this article is a must read! It provides details of the FHSA program and why it has been so good for investors!
