Highlights
Canadian Finance Minister Chrystia Freeland announced Monday that she is resigning from Prime Minister Justin Trudeau's cabinet, just hours before she was scheduled to deliver the government's much-delayed fall economic statement, dealing another blow to the Liberal Party leader who has come under pressure from within his own party quit amid sagging public approval ratings.
Conservative Leader Pierre Poilievre called on the prime minister to call an election right away while Jagmeet Singh, leader of the New Democratic Party, which has supported the current administration, said Trudeau must resign. The 52-year-old prime minister, in office for just over nine years, has been refusing to step down.
In her resignation letter, Freeland, who is also deputy prime minister, revealed that Trudeau told her on Friday that he no longer wanted her to serve as finance minister and offered her another position in the cabinet. For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada, she told the prime minister.
Freeland's departure comes at a crucial time for the Canadian economy. Last week, the Bank of Canada lowered its policy interest rate the target for overnight lending rates by another large-size 50 basis points to 3.25%, as widely expected, to prop up slowing economic growth and counter downside risks from Ottawa's reduced immigration targets and possible new U.S. tariffs on Canadian exports.
U.S. President-elect Donald Trump has threatened to impose a 25% tariff on all goods from Mexico and Canada, and an additional 10% tariff on imports from China, all part of his drive to crack down on illegal drugs and immigration.
We need to take that threat extremely seriously, Freeland said. That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war. That means eschewing costly political gimmicks, she said, referring to Trudeau's latest cash handouts to lower to middle-income households and a two-month federal sales tax break on some goods that began on Saturday.
Conservative Leader Pierre Poilievre called on the prime minister to call an election right away while Jagmeet Singh, leader of the New Democratic Party, which has supported the current administration, said Trudeau must resign. The 52-year-old prime minister, in office for just over nine years, has been refusing to step down.
In her resignation letter, Freeland, who is also deputy prime minister, revealed that Trudeau told her on Friday that he no longer wanted her to serve as finance minister and offered her another position in the cabinet. For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada, she told the prime minister.
Freeland's departure comes at a crucial time for the Canadian economy. Last week, the Bank of Canada lowered its policy interest rate the target for overnight lending rates by another large-size 50 basis points to 3.25%, as widely expected, to prop up slowing economic growth and counter downside risks from Ottawa's reduced immigration targets and possible new U.S. tariffs on Canadian exports.
U.S. President-elect Donald Trump has threatened to impose a 25% tariff on all goods from Mexico and Canada, and an additional 10% tariff on imports from China, all part of his drive to crack down on illegal drugs and immigration.
We need to take that threat extremely seriously, Freeland said. That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war. That means eschewing costly political gimmicks, she said, referring to Trudeau's latest cash handouts to lower to middle-income households and a two-month federal sales tax break on some goods that began on Saturday.
Definition
Global-FYI tracks critical developments fon the global markets including political news, special central bank announcements, and substantial moves in the financial markets.
Description
Major political events and special announcements by the global central banks can shift both the short-term and long-term outlooks for the global economy and financial markets.
