Many economies around the world, including Canada, will be analyzing how the new US tariffs, that went into effect last Friday, will impact their consumer and business activity. Trade tensions once again escalated last week, raising uncertainty towards the outlook for the global economy. The US Federal Reserve Board (Fed) is set to make its fifth interest rate announcement of 2026 this week. In addition to geopolitical and trade tensions, here are some key economic and business news to monitor this week.

• Statistics Canada will release Canada’s gross domestic product for May on Friday. Canada’s economy expanded at a robust pace in April, which could be pointing to an expansion for the second quarter of 2026.
• The Fed makes its interest rate announcement on Wednesday. The federal funds rate currently stands at a target range of 3.50%–3.75%. The Fed is currently expected to raise interest rates in 2026. Will it be at this meeting?
• Also in the US, an advanced estimate of US economic growth will be released on Thursday.
• Looking abroad, European economic growth and the Bank of England’s interest rate decision will be announced on Thursday, China’s manufacturing sector activity on Thursday night and Europe’s inflation rate on Friday.
• Notable earnings in Canada include CGI, Loblaw, TMX Group and Imperial Oil. Key earnings in the US include Coca-Cola, Meta Platforms, Starbucks, Microsoft, Apple, Amazon.com, Chevron and Exxon Mobil.

Beyond the economic announcements, geopolitical tensions will play an important role in the direction of financial markets this week. Escalation of tensions between the US and Iran have pushed up oil prices, once again stoking concerns about inflation. We will learn a lot about the Fed’s view of the US economy, and where they see inflation headed in the months to come.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.