The Federal Reserve raised interest rates for the first time since 2023—and markets are wondering if the Bank of Canada will follow.

The 25-basis-point hike was widely expected after strong U.S. growth and persistent inflation, and it's unlikely to be a one-and-done.

Canada's story is different. Inflation excluding energy sits near the 2% target, and a weak economy is still constraining price pressures.

In this episode of The 10-Minute Take, Claire Fan and Carrie Freestone look at diverging central bank paths in Canada and the United States, and what could derail forecasts.

Business investment in Canada rebounded in Q2 after stagnating for more than a year as AI infrastructure related spending ramped up, and weak oil and gas spending recovered.

An unprecedented AI buildout continues to power private investment in the U.S., though rising bond yields are pushing up borrowing costs.

In this episode of The 10-Minute Take, RBC Economics’ Claire Fan and Carrie Freestone discuss investment trends reshaping Canada and the U.S., and what to expect heading into 2027.

U.S.-Canada trade talks have broken down followed by new tariffs from each side. At the same time, 30-year U.S. Treasury yields hit their highest level since 2007—driven by persistent inflation concerns, and a national debt crossing US$40 trillion.

In this episode of the 10-Minute Take, RBC Economics' Claire Fan and Carrie Freestone discuss:

• What the latest tariffs and the counter measures mean for the broader Canadian economy.
• Why 30-year Treasury yields are at two-decade highs, and what its buyback program can and can’t fix.
• How inflation, fiscal deficits, and rising interest costs are creating a challenging bind for the U.S.