Wildfires and Rate Hikes, Eh?

Not only do we have the 2023 Central Canada wildfires making headlines this week, as the smoke and smog make their way down to even where I am in northern New Jersey by New York City, but we also have the Bank of Canada resuming rate hikes after a prior pause. 

In fact, rates in Canada just hit a 22-year high after that four month pause from the BoC. 

If there is one thing The Fed likely does not want to see here in America, it is a repeat of their recent "transitory" blunder, where was humiliating for the lot of them as they dismissed inflation for a long time until they could no longer do so and had to play catch-up with rate hikes in historical fashion.  

Thus, Canada's pause-then-hike pattern ought to be a clear red flag to Mr. Powell, albeit he is not exactly a profile in a strong backbone and is someone who has already made a plethora of mistakes during this cycle. 

Still, the Nasdaq sold off on the BoC news, and rates on the 10-Year Note spiked higher, which tells me the news up in Canada is drifting down here along with the smoke and smog...