The U.S. central bank announced a 50 basis point increase and announced it will start reducing its US$9 trillion balance sheet of Treasury and mortgage bonds starting in June that more than doubled after the pandemic recession hit.
Some observers even suggested a 75-point hike was possible on Wednesday. But Currie said that would have sent a signal that inflation is even worse than the 40-year high it has reached in the U.S. The S&P/TSX composite index closed up 279.67 points or 1.3 per cent to 21,184.95 after dipping to an intraday low of 20,798.78.
“I think there would be nothing here that would prevent the Bank of Canada from still being aggressive on the rate hikes which all their recent statements say they still want to do.” The June crude contract was up US$5.40 at US$107.81 per barrel and the June natural gas contract was up 46.1 cents at US$8.42 per mmBTU.
“So it is mostly on the EU plan, but I think it's also little bounce after a bit of a drop yesterday.”
That means housing will keep going up