5 Both could help explain the weakness in  4  Averaging across the estimates in figure 2, the estimates of r* are down 0.3 percentage point and those of u* are down 0.2 percentage point. 5 Taken literally, the revised estimates of the stars would, by standard rules of thumb, call for a somewhat lower federal funds rate.
Plenty of uncertainty remains around the implications of the US-China agreement for Canadian exports and around whether any more of the new tariffs can be rolled back. Some are concerned that the next step will be for the US administration to take similar trade actions against the European Union. It is understandable that companies are reluctant to make big investments in this setting.