Canada Just Cut Interest Rates Again. Some Think the Fed Should Do the Same [Video]

Canada’s central bank isn’t waiting for its economy to get any worse before making interest rate cuts—and some say the Federal Reserve shouldn’t either.

After becoming the first Group of Seven (G7) economy to cut its interest rate in the face of a global fight against inflation, the Bank of Canada again reduced its rate by a quarter-percentage point Wednesday. The move comes as inflation in Canada decreased to 2.7% in June, down from May levels.

Central bankers in both Canada and the U.S. have been watching closely to see signs that inflation was moving lower. However, Canadian officials are now raising worries that their inflation may fall too fast as a result of weakening economic conditions.

“With the target in sight and more excess supply in the economy, the downside risks are taking on increased weight in our monetary policy deliberations. We need growth to pick up so inflation does not fall too much, even as we work to …