The Fed funds rate and Bank of Canada rate are now at neutral (r-star), yet Canada is experiencing a balance sheet recession with 'pushing on a string' dynamics (flat LM curve where monetary policy can't stimulate), but the US is different because American consumers are less levered up and the economy has more growth capacity.
factualpending
Speaker
James ThorneEvidence Quote
“the Fed fund the Bank of Canada rates basically at our star right now right and we're going through a balance sheet recession up here right there is no kickback this is you know we're going back we're walking into pushing on a string right the flat LM curve”
Created: 8/11/2026, 7:42:06 AM
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