North American Outlook: Tailwinds and Tariffs

Key Messages

Lower interest rates flag another year of solid growth for the U.S. economy and a pickup in Canada, but tariffs could upend things.
The BoC and Fed look to lower rates another 75 bps in 2025, supporting a limited rally in bonds.
The Canadian dollar will struggle against the mighty greenback until Trump's tariff thrusts are parried and the economy picks up

Sal Guatieri

Director and Senior Economist