Tariff bills across U.S. states mount as affordability and Trump head for midterm elections showdown

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This summary reflects discussions and deliberations by members of Governing Council in stage three of the Bank’s monetary policy decision-making process. This stage takes place after members have received all staff briefings and recommendations. Governing Council’s policy decision-making meetings began on January 20, 2026. The Governor presided over these meetings. Members in attendance were Governor Tiff Macklem, Senior Deputy Governor Carolyn Rogers and Deputy Governors Toni Gravelle, Sharon Kozicki, Nicolas Vincent, Rhys Mendes and Michelle Alexopoulos. Governing Council began deliberations by discussing recent data and developments in the global economy. Members reflected on recent geopolitical turbulence and what it meant for the outlook for global growth. While most major economies had proven resilient in the face of US tariffs, the prospects for global growth were vulnerable to unpredictable US trade policy and heightened geopolitical tensions. In the United States, strength in consumer spending as well as investment related to artificial intelligence (AI) contributed to stronger-than-expected economic growth. Members anticipated that consumption would remain robust due to wealth effects from strong equity markets and growth in real incomes from productivity gains. The US labour market had softened, with some weakness in hiring over recent months. Going forward, labour market conditions were expected to stabilize with solid growth in US gross domestic product (GDP). US inflation was being held up by the pass-through of higher tariffs to prices, but inflation was expected to ease gradually as the impact of tariffs on inflation fades. Nevertheless, members acknowledged that businesses might have been holding back on passing on the costs of tariffs to their cu BANK OF CANADA MINUTES SHOW MEMBERS AGREED TO MAINTAIN POLICY OPTIONALITY AHEAD OF THE JAN. 28 RATE DECISION, VIEWING THE POLICY RATE AS STIMULATIVE AMID HEIGHTENED UNCERTAINTY OVER GROWTH, POTENTIAL OUTPUT AND ECONOMIC SLACK. GOVERNING COUNCIL SAID THREATS TO FEDERAL RESERVE…