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The U.S. Federal Reserve has resumed normal monetary service by raising interest rates for the second time in three months. The Fed’s decision on 15 March 2017 reflects its confidence in the continuing expansion and signals that its efforts to relate the world’s largest economy are largely on track – with overall inflation seen to be stabilising around its longer run target of 2% over the next couple of years. Significantly, Chair Janet Yellen stressed that policymakers expect the strengthening economy would warrant “gradual increases” in the benchmark federal funds rate to ensure that the monetary policy stance remains accommodative of growth, even as price stability is ensured. This emphasis on ‘gradual’ provides a degree of policy predictability that markets, […]

Canada’s federal budget will launch a competition to pick about a half dozen research clusters that will receive hundreds of millions in government funding, people familiar with the plans say. Innovation and skills training will be a key theme of Finance Minister Bill Morneau’s second budget, due for release March 22 in Ottawa. Last year’s budget allocated up to C$800 million ($600 million) over four years to “support innovation networks and clusters” and this year’s plan won’t include any significant new funding on top of that, according to two people who spoke on condition of anonymity because the document isn’t yet public. The government will launch the process to pick the innovation clusters where the federal money is best concentrated, […]