January 28, 2026
Bank of Canada and Federal Reserve Hold, Moving to the Sidelines for Now
KEY SUMMARY POINTS
- The Bank of Canada (BoC) and Federal Reserve (Fed) held policy rates steady.
- Governor Macklem pointed to elevated uncertainty around the USMCA review as clouding the monetary policy outlook.
- Chair Powell struck a balanced tone, acknowledging stabilization in the labour market while remaining constructive on the inflation outlook.
- Powell largely avoided answering politically charged questions, reaffirming that policy will remain data dependent.
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About the Author
Neil Shankar is CI Global Asset Management’s Economist, responsible for monitoring key macroeconomic trends and shaping CI GAM’s economic outlook. He actively participates in investment and asset allocation discussions, helping guide decision-making.
A leading contributor to CI GAM’s Capital Insights publication, Neil shares in-depth perspectives on evolving economic conditions. He also frequently engages with stakeholders throughout the organization and externally, helping to deepen understanding of the economic landscape. He is regularly quoted in the press for his views on the economy and markets.
With over 10 years of industry experience, Neil joined CI GAM in 2024 after holding similar roles at other major Canadian financial institutions. Neil holds an MA in Business Economics from Wilfrid Laurier University and a BA (Honours) in Economics from The University of Western Ontario.
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