The world's most powerful central banker has confirmed that U.S. interest rates are on the way up — and if history is any guide, Canadian rates are going up with them. As expected by nearly everyone, the Fed raised rates by a quarter of a percentage point to 2.25 per cent. Powell's warningThe unexpected warning for Canadian housing came in what was intended as a reassuring response to a question about the danger of a U.S. asset bubble. "If you look at asset prices, it is true that assets are at the upper reach of their historical ranges," Powell said. And U.S. consumers in general are relatively safe because their most dangerous asset, housing, was part of a bubble that popped more than a decade ago.

Source: CBC News September 27, 2018 07:52 UTC