BOC's Macklem is speaking and says:
- There are some reasons to believe that the neutral interest rate is more likely higher than lower
Earlier, the Bank of Canada governor said that the Federal and Provincial government spending is beginning to get in the way of getting inflation back to target.
Although Fed Chair Powell tends to deflect questions about fiscal policy, there is no doubt that the Fed at times does battle the fiscal side of the equation (and quite frankly I'm surprised that he doesn't speak more openly about that risk).
