09:10 AM EDT, 08/25/2025 (MT Newswires) -- Lost on Friday's intense focus on Federal Reserve Chair Jay Powell was the decision by Canadian Prime Minister Mark Carney to drop 25% countervailing tariffs on most U.S. imports -- over $20 billion, said Rosenberg Research.

The government's decision is likely to give the Bank of Canada some leeway to rekindle its rate-cutting program, seeing as the effect this should have on bringing core inflation back towards target at a time when the unemployment rate is clearly drifting higher and the disinflationary output gap is widening, noted Rosenberg Research.

This should help provide more impetus to the bond market and undercut the listless Canadian dollar (CAD or loonie) -- the weakest-performing G-10 currency year-to-date -- even as the Federal Reserve restarts its easing cycle, stated Rosenberg.