Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.
In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/2 to 4-3/4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Beth M. Hammack; Philip N. Jefferson; Adriana D. Kugler; and Christopher J. Waller.
The S&P 500 and S&P/TSX Composite indexes both closed at record highs on Thursday after the Federal Reserve announced a cut of 25 basis points in interest rates, extending a sharp rally sparked by Donald Trump’s return as U.S. president. Bond yields reversed course from Wednesday, however, and were lower for the session in both the U.S. and Canada.
It was the first record high close for the Canadian benchmark stock index since Oct. 17.
…
Investor expectations that Trump would lower corporate taxes and loosen regulations sparked a surge in each of the three major indexes in the prior session, with both the Dow Industrials and S&P 500 recording their largest one-day percentage jumps in two years.
…
Treasury yields, which have surged in recent weeks, retreated after a sharp rise on Wednesday, as the U.S. benchmark 10-year yield eased from a four-month high of 4.479% to 4.332% by late day.Expectations for continued U.S. rate cuts have been dialed back recently, however, as economic data continues to point to a resilient economy and the potential for higher inflation as a result of likely tariffs and increased government spending under Trump’s administration.
Fed Chair Jerome Powell said no decision has been made on what sort of policy action the central bank will take in December but the central bank is “prepared to adjust our assessment of the appropriate pace and destination” for monetary policy amid uncertainty.
Meanwhile, Powell faces questions about his job security:
President-elect Donald Trump remains likely to allow Federal Reserve Chair Jerome Powell to serve out the remainder of his term, which expires in May 2026, according to a senior adviser to Trump who requested anonymity to describe private conversations.
The adviser cautioned that Trump could always change his mind, but his present view — and that of Trump’s economic team — is that Powell should remain atop the central bank as it pursues its policy of cutting interest rates. Trump in July told Bloomberg he had intended to keep Powell in his role at least for the duration of his term.
Still, Powell was peppered with questions about his job security during his first post-election press conference Thursday. Powell issued a terse “No” in response to a question about whether he would leave his Fed post before his term is up if President-elect Donald Trump asked him to. Powell later clarified that he believes Trump cannot fire him.
”Not permitted under the law,” Powell said.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1278 % | 2,148.4 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1278 % | 4,120.5 |
| Floater | 8.86 % | 9.38 % | 33,387 | 10.01 | 4 | 0.1278 % | 2,374.7 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2215 % | 3,595.8 |
| SplitShare | 4.80 % | 5.38 % | 66,610 | 2.15 | 6 | 0.2215 % | 4,294.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2215 % | 3,350.5 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0341 % | 2,791.0 |
| Perpetual-Discount | 6.17 % | 6.26 % | 51,704 | 13.51 | 31 | -0.0341 % | 3,043.5 |
| FixedReset Disc | 5.58 % | 7.08 % | 96,112 | 12.31 | 58 | -0.0567 % | 2,647.9 |
| Insurance Straight | 6.03 % | 6.17 % | 68,031 | 13.62 | 21 | 1.2870 % | 3,002.9 |
| FloatingReset | 7.70 % | 7.40 % | 27,222 | 11.99 | 2 | 0.1236 % | 2,837.8 |
| FixedReset Prem | 6.40 % | 5.57 % | 176,762 | 3.73 | 7 | -0.0442 % | 2,585.9 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0567 % | 2,706.7 |
| FixedReset Ins Non | 5.30 % | 6.29 % | 80,837 | 13.43 | 14 | 0.0383 % | 2,769.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BN.PF.B | FixedReset Disc | -7.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 19.00 Evaluated at bid price : 19.00 Bid-YTW : 7.83 % |
| BN.PR.N | Perpetual-Discount | -5.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 17.00 Evaluated at bid price : 17.00 Bid-YTW : 7.11 % |
| GWO.PR.Q | Insurance Straight | -5.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 6.54 % |
| ENB.PR.D | FixedReset Disc | -2.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 7.95 % |
| BIP.PR.E | FixedReset Disc | -2.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 22.08 Evaluated at bid price : 22.50 Bid-YTW : 6.99 % |
| GWO.PR.I | Insurance Straight | -1.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 18.40 Evaluated at bid price : 18.40 Bid-YTW : 6.21 % |
| FTS.PR.K | FixedReset Disc | -1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 19.70 Evaluated at bid price : 19.70 Bid-YTW : 6.77 % |
| CCS.PR.C | Insurance Straight | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 20.76 Evaluated at bid price : 20.76 Bid-YTW : 6.11 % |
| BN.PR.R | FixedReset Disc | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 16.52 Evaluated at bid price : 16.52 Bid-YTW : 7.81 % |
| BN.PF.J | FixedReset Disc | -1.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 21.85 Evaluated at bid price : 22.15 Bid-YTW : 7.08 % |
| GWO.PR.R | Insurance Straight | -1.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 19.59 Evaluated at bid price : 19.59 Bid-YTW : 6.22 % |
| SLF.PR.H | FixedReset Ins Non | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 6.92 % |
| FFH.PR.F | FloatingReset | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 17.40 Evaluated at bid price : 17.40 Bid-YTW : 8.41 % |
| GWO.PR.Y | Insurance Straight | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 18.49 Evaluated at bid price : 18.49 Bid-YTW : 6.18 % |
| PVS.PR.J | SplitShare | 1.04 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2028-02-29 Maturity Price : 25.00 Evaluated at bid price : 24.25 Bid-YTW : 5.69 % |
| FFH.PR.D | FloatingReset | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 22.83 Evaluated at bid price : 23.10 Bid-YTW : 7.40 % |
| CU.PR.I | FixedReset Disc | 1.23 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-12-01 Maturity Price : 25.00 Evaluated at bid price : 24.45 Bid-YTW : 6.42 % |
| BIP.PR.F | FixedReset Disc | 1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 22.12 Evaluated at bid price : 22.65 Bid-YTW : 6.84 % |
| PWF.PR.Z | Perpetual-Discount | 1.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 20.66 Evaluated at bid price : 20.66 Bid-YTW : 6.29 % |
| BN.PR.X | FixedReset Disc | 2.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 15.64 Evaluated at bid price : 15.64 Bid-YTW : 7.83 % |
| PWF.PR.L | Perpetual-Discount | 2.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 20.55 Evaluated at bid price : 20.55 Bid-YTW : 6.26 % |
| FFH.PR.K | FixedReset Disc | 2.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 21.66 Evaluated at bid price : 22.10 Bid-YTW : 7.22 % |
| CU.PR.C | FixedReset Disc | 3.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 20.40 Evaluated at bid price : 20.40 Bid-YTW : 6.66 % |
| CU.PR.J | Perpetual-Discount | 4.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 19.26 Evaluated at bid price : 19.26 Bid-YTW : 6.18 % |
| GWO.PR.G | Insurance Straight | 4.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 21.30 Evaluated at bid price : 21.30 Bid-YTW : 6.20 % |
| BN.PF.F | FixedReset Disc | 5.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 7.46 % |
| SLF.PR.D | Insurance Straight | 18.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 5.79 % |
| GWO.PR.T | Insurance Straight | 22.78 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 21.18 Evaluated at bid price : 21.18 Bid-YTW : 6.17 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CM.PR.S | FixedReset Disc | 381,004 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 24.97 Evaluated at bid price : 24.97 Bid-YTW : 5.64 % |
| FFH.PR.C | FixedReset Disc | 63,279 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 22.33 Evaluated at bid price : 23.10 Bid-YTW : 6.76 % |
| ENB.PR.N | FixedReset Disc | 24,250 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 21.42 Evaluated at bid price : 21.42 Bid-YTW : 7.17 % |
| ENB.PR.Y | FixedReset Disc | 22,179 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 17.55 Evaluated at bid price : 17.55 Bid-YTW : 7.87 % |
| BMO.PR.W | FixedReset Disc | 20,500 | YTW SCENARIO Maturity Type : Call Maturity Date : 2024-12-25 Maturity Price : 25.00 Evaluated at bid price : 24.95 Bid-YTW : 4.87 % |
| TD.PF.C | FixedReset Disc | 20,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-11-07 Maturity Price : 22.44 Evaluated at bid price : 23.32 Bid-YTW : 5.66 % |
| There were 7 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BN.PR.N | Perpetual-Discount | Quote: 17.00 – 19.06 Spot Rate : 2.0600 Average : 1.4489 YTW SCENARIO |
| BN.PF.B | FixedReset Disc | Quote: 19.00 – 20.65 Spot Rate : 1.6500 Average : 1.0652 YTW SCENARIO |
| GWO.PR.Q | Insurance Straight | Quote: 20.00 – 21.25 Spot Rate : 1.2500 Average : 0.7079 YTW SCENARIO |
| PWF.PR.O | Perpetual-Discount | Quote: 23.05 – 24.02 Spot Rate : 0.9700 Average : 0.6019 YTW SCENARIO |
| PWF.PR.F | Perpetual-Discount | Quote: 21.12 – 22.30 Spot Rate : 1.1800 Average : 0.8158 YTW SCENARIO |
| PWF.PR.S | Perpetual-Discount | Quote: 17.00 – 20.00 Spot Rate : 3.0000 Average : 2.6981 YTW SCENARIO |