The Globe and Mail reports in its Tuesday, Sept. 22, edition that Bank of Canada Governor Tiff Macklem says the unpredictability of U.S. trade policy has heightened uncertainty for businesses and could set back the recent progress of the Canadian economy. A Canadian Press dispatch to The Globe reports that the Canadian economy grew 3.3 per cent on an annualized basis in the second quarter, the fastest quarterly pace of growth since early 2023. Mr. Macklem says if the new U.S. tariffs remain in place, the rate of growth for the economy could be roughly halved in the fourth quarter to below 1 per cent. He says it isn't going to be easy, but the economy is showing resilience. He says, "This isn't going away any time soon, but people are getting on." Mr. Macklem says the bank has been looking through the direct impact of higher oil prices on inflation so far, assuming the effects will be temporary, but the risk that it becomes more persistent has increased. The trade challenges come as Mr. Macklem says the war in the Middle East continues to push oil and gasoline prices higher. He says as things stand now, if oil prices stay near $100 (U.S.) per barrel, the BOC would expect inflation to edge up in the coming months.