Fed Holds Rates, Signals Caution as Inflation Data Disappoints
Committee Agrees To Agree To Reconvene And Consider Agreeing Later
Apr 6, 2026 4 min
GDP $28.8T · USMCA
North America remains the world's largest economic zone by nominal GDP, anchored by the United States Federal Reserve's monetary policy and a labour market that has defied textbook predictions for three consecutive years. Canada's resource sector faces commodity price volatility while Mexico's nearshoring boom continues to attract manufacturing investment at scale.
Soft landing is the base case, but the path is narrowing. Rate cuts are priced in but not guaranteed. Corporate earnings have held up better than feared, which may itself become a problem if it delays necessary Fed easing.
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