U.S. Fed independence could affect Canada, BoC's Macklem

Bank of Canada Governor Tiff Macklem said a loss of independence at the U.S. Federal Reserve would affect Canadian financial markets because the two economies are closely integrated. He said it is hard to predict the exact implications and described Fed independence as beneficial for both Americans and Canadians.

The head of the Bank of Canada, Tiff Macklem, commented that a loss of independence at the U.S. Federal Reserve would have effects on Canadian financial markets. He made the remarks at a news conference following the Bank of Canada's latest rate decision. Macklem said it is difficult to predict precisely what the consequences would be and stressed that an independent Fed is good for both Americans and Canadians. What Macklem said: - A loss of independence at the U.S. Federal Reserve would affect Canadian financial markets. - He cited the close integration of the U.S. and Canadian economies as the reason for cross-border effects. - He said it is hard to predict the exact implications and emphasized that Fed independence is beneficial for both countries. Summary: Macklem's comments point to potential cross-border impacts on Canadian markets if the U.S. central bank's independence were weakened. Undetermined at this time.