At that time, the first-quarter increase in real GDP had been revised up to almost 4 percent, and after a slightly softer second quarter, most estimates pointed to another increase in the 4 percent range or higher for the third quarter. The economy was generating, on average, 175,000 private nonfarm jobs per month, and the unemployment rate was down to 5 percent.
Core consumer price inflation was running at about 2 percent. In short, at midyear, the U.S. economy appeared to be on firm footing, and inflation appeared to be well contained. Canada's economy appeared to be in a roughly similar position, as inflation was running at about 2 percent--approximately the midpoint of the Bank of Canada's inflation-target band-and the unemployment rate at about 6-3/4 percent.