With a narrowly Democratic Congress, U.S. fiscal spending is likely to increase on economic relief from the pandemic, infrastructure, and healthcare, boosting the economic rebound.

The Federal Reserve signals that monetary policy accommodation will remain firmly in place.

The lack of market reaction suggests that many investors are not convinced that the Fed’s new guidance represents any material shift in policy.

Fed officials seek higher inflation but need help from fiscal policymakers.

Canada’s economy may be at greater risk for lasting damage, but we believe Ottawa is well-positioned to respond.