WINNIPEG – The following is a glance at the news moving markets in Canada and globally.
– United States Federal Reserve Chair Jerome Powell announced on Wednesday that while the key benchmark interest rate will remain close to zero, he mentioned there could be two interest-rate increases by the end of 2023. With inflation at roughly five per cent in the U.S., investors were waiting to see if the Fed was going to start cutting back its bond-buying program, which was used to help improve the U.S. economy battered by the COVID-19 pandemic. Powell also stated in a press conference on Wednesday after the Fed’s two-day meeting that he expects there to be a strong labour market “very quickly”.
– A three-hour meeting between U.S. President Joe Biden and Russian President Vladimir Putin in Geneva, Switzerland on Wednesday provided little progress towards fixing the strained relationship between the two nations. However, both nations have decided to return their ambassadors to each other’s country after being recalled in March. Both leaders also agreed to negotiate on a new version of the New START nuclear treaty which expires in 2026, as well as discuss cybersecurity and a possible prisoner exchange.
– Pembina Pipeline Corp. and TC Energy Corp. have announced a new carbon transportation and sequestration plan in Alberta today. Both companies plan to retrofit existing pipelines to transport as much as 20 million tonnes of carbon dioxide each year to a sequestration location northeast of Redwater, Alta. The first phase is projected to be in operation by 2025.