US January Employment: Strong Start Out of the Gate

US Treasury Secretary Bessent: Trump is laser-focused on the housing market. BESSENT: I SEE A PICKUP IN MANUFACTURING JOBS IN THE COMING MONTHS BESSENT: I EXPECT A CONTINUED PICKUP IN CONSTRUCTION JOBS. ... US TREASURY SECRETARY BESSENT SAYS THE U.S. IS TRACKING FUNDS SENT AROUND THE WORLD BY IRAN’S LEADERSHIP

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…

Federal Reserve official, President and CEO of the Federal Reserve Bank of Cleveland, Beth Hammack reiterated a steady but firm message, signalling little shift in the central bank’s stance as policymakers weigh the next move in rates. Hammack said the unemployment rate appears to be stabilising and characterised the labour market as broadly in balance, with the latest data reinforcing that view. The comments suggest the Fed sees limited immediate risk of labour market deterioration, reducing urgency for rate cuts on employment grounds. At the same time, she stressed inflation remains too high and emphasised the importance of returning price growth to the Fed’s 2% target. The tone underscores that policymakers are not yet convinced inflation pressures have been fully tamed. Hammack also noted that consumer spending continues to hold up, driven disproportionately by higher-income households. That dynamic may help explain why overall demand has remained resilient despite restrictive policy settings. Taken together, the remarks point to a Federal Reserve that is comfortable with current labour market conditions but not prepared to declare victory on inflation. The message aligns with other recent commentary from Fed officials that policy needs to remain sufficiently restrictive until inflation is firmly on a sustainable path back to target. FED’S HAMMACK SAID THE LABOR MARKET APPEARS BROADLY IN BALANCE WITH A STABILIZING UNEMPLOYMENT RATE, BUT STRESSED INFLATION REMAINS TOO HIGH AND MUST RETURN TO THE 2% TARGET.