RBC Market Update - Week ending May 16, 2025

Rachelle discusses recent developments in the ongoing trade war and the sustainability of U.S. outperformance.

The Fed and its dueling mandate

Questions regarding the Federal Reserve’s price stability and maximum employment mandates abound. We look at what investors should know at a time when there is a lack of clarity regarding the central bank’s next moves.

How tariff policy unpredictability is rippling through U.S. Treasury bonds

U.S. government borrowing costs on longer-maturity debt have risen more quickly than on shorter-maturity debt since so-called reciprocal tariffs were announced. We discuss what drove that reaction and why the difference is likely to persist.

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All the best,
Vito, Eric and Rachelle