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  • North American Outlook

    November 23, 2021 | 10:23

    Skid Game

    profile photo of Sal Guatieri

    Sal Guatieri

    Senior Economist and Director
    Economics

    Sal Guatieri is a Senior Economist and Director at BMO Capital Markets, with over two decades experience as a ma... (Read more)

    profile photo of Sal Guatieri

    Sal Guatieri

    Senior Economist and Director
    Economics

    Sal Guatieri is a Senior Economist and Director at BMO Capital Markets, with over two decades experience as a ma... (Read more)

    More
    Key Summary

    Supply shortages have left the auto industry reeling and many companies scrambling for parts. Combined with the Delta wave, a drought that walloped the agriculture sector, and now the B.C. floods, the supply challenges have slowed North America's expansion. But, growth is set to rebound as virus cases and supply issues abate, even if the latter could linger into next year.


    Stubbornly high Inflation has spread to more goods and services, and now rising wages risk fanning the flames.


    By ending QE, the Bank of Canada has removed its foot from the accelerator, while warning of possible earlier rate hikes. The Fed continues to cling to the transitory inflation mantra, but has at least taken a toe off the gas pedal by beginning to taper its asset purchases.


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