Finance
Fed holds rates steady, sees slower growth and higher inflation amid Trump uncertainties
The Federal Reserve held interest rates steady Wednesday for the second meeting in a row and maintained a prior prediction for two rate cuts at some point this year.
What the central bank did change, however, was its outlook on inflation and economic growth amid uncertainties stemming from some of President Trump’s economic policies.
Fed officials now see inflation staying higher this year than previously estimated and economic growth going lower than prior predictions.
Policymakers estimate that the core Personal Consumption Expenditures (PCE) measure of inflation will be 2.8% at the end of 2025, compared with 2.5% previously.
And the US economy is now projected to grow at an annualized pace of 1.7% instead of 2.1%. The unemployment rate is seen edging up to 4.4% from 4.3% previously.
“Uncertainty around the economic outlook has increased,” Fed officials said in their policy statement.
The adjustments are the first from policymakers during the new Trump administration, just as the new president’s economic policies are being put into place.
The signature move from the White House since Jan. 20 has been the imposition of tariffs on China, Canada, and Mexico, as well as on steel and aluminum. Trump promises to announce a new slate of “reciprocal” duties on many more countries early next month.
Fed Chair Jay Powell has also consistently stressed a wait-and-see approach to assessing the economic impact of policy changes.
He did the same Wednesday at a press conference, telling reporters that the Fed is focusing on “separating the signal from the noise” when evaluating how Trump’s policies may affect the economic outlook.
“We do not need to be in a hurry to adjust our policy stance.”
The Fed has now held borrowing costs steady for two consecutive meetings, maintaining its benchmark interest rate in the range of 4.25%-4.5%. The pause follows three consecutive rate cuts in late 2024.
The central bank also announced it will begin slowing the pace of Treasuries being drawn off its balance sheet starting in April, reducing the amount of Treasuries allowed to roll off from $25 billion to $5 billion. The Fed, however, will maintain the pace of mortgage-backed securities being drawn down by $35 billion per month.
Fed governor Chris Waller dissented in Wednesday decision because he would have preferred to continue the current pace of decline in letting bonds mature off the Fed’s balance sheet. He agreed with the decision to hold rates steady.
Waller and his Fed colleagues on Wednesday kept their median estimate first made in December for two rate cuts in 2025, even as a much-studied “dot plot” showed a large number of policymakers favored fewer or no cuts.
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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