The FOMC will continue to closely monitor the level and projected expansion of bank reserves to ensure that – as noted in the joint Federal Reserve-Treasury statement – the Fed's efforts to improve the workings of credit markets do not interfere with the independent conduct of monetary policy in the pursuit of its dual mandate of ensuring maximum employment and price stability.
Second, while weaker-than-expected confidence among large businesses remains a risk for both countries, the sectors that face the biggest challenges, such as computer equipment and telecommunications, make up a larger share of the U.S. economy than of the Canadian economy. So what do recent economic developments in Canada mean from a policy perspective?