{"id":617722,"date":"2024-04-01T19:32:15","date_gmt":"2024-04-01T16:32:15","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-power-list-tiff-macklem\/"},"modified":"2024-04-01T19:32:15","modified_gmt":"2024-04-01T16:32:15","slug":"the-power-list-tiff-macklem","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-power-list-tiff-macklem\/","title":{"rendered":"#The Power List: Tiff Macklem"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a30450f00204\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a30450f00204\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/the-power-list-tiff-macklem\/#Get_the_Best_of_Macleans_straight_to_your_inbox\" >Get the Best of Maclean\u2019s straight to your inbox.<\/a><\/li><\/ul><\/nav><\/div>\n<div>\n<div class=\"wp-block \">\n<div class=\"relative ad-free-zone\">\n<div class=\"w-screen overflow-hidden -mt-20\">\n<div class=\"tablet:h-[calc(100svh)] overflow-hidden flex flex-col-reverse tablet:grid tablet:grid-cols-2 bg-white text-dark tablet:text-dark tablet:bg-white tablet:border-b-1 border-b-grey-light\">\n<div class=\"grid place-content-center tablet:pt-40 px-20 tablet:pl-10\">\n<div class=\" text-dark w-full max-w-[600px] mx-auto tablet:max-w-[640px] py-20 tablet:px-40 tablet:p-40 bg-opacity-100 tablet:bg-opacity-[var(--bg-opacity)] text-center\">\n<div class=\"text-grey leading-smm text-smm tablet:text-base tablet:leading-smxl font-lightmedium font-sans mb-10\">He\u2019s damned if he raises interest rates and damned if he doesn\u2019t. Our central banker is the reluctant main character in Canada\u2019s housing drama.\n<\/div>\n<p><span class=\" text-dark author text-xs leading-xs whitespace-break-spaces\">BY ALEX CYR<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"tablet:row-start-auto row-start-1 tablet:h-[calc(100svh)]\"><img fetchpriority=\"high\" width=\"2327\" height=\"2560\" decoding=\"async\" data-nimg=\"1\" class=\"w-full h-full object-cover\" style=\"color:transparent\" sizes=\"(max-width: 834px) 50vw, (max-width: 1024px) 80vw, 100vw\" srcset=\"\/_next\/image?url=https%3A%2F%2Fcms.macleans.ca%2Fwp-content%2Fuploads%2F2024%2F04%2F1.-Tiff-Macklem_feature_-Renaud-Philippe-Bloomberg-via-Getty-Images-scaled.jpg&amp;w=384&amp;q=80 384w, \/_next\/image?url=https%3A%2F%2Fcms.macleans.ca%2Fwp-content%2Fuploads%2F2024%2F04%2F1.-Tiff-Macklem_feature_-Renaud-Philippe-Bloomberg-via-Getty-Images-scaled.jpg&amp;w=640&amp;q=80 640w, \/_next\/image?url=https%3A%2F%2Fcms.macleans.ca%2Fwp-content%2Fuploads%2F2024%2F04%2F1.-Tiff-Macklem_feature_-Renaud-Philippe-Bloomberg-via-Getty-Images-scaled.jpg&amp;w=750&amp;q=80 750w, \/_next\/image?url=https%3A%2F%2Fcms.macleans.ca%2Fwp-content%2Fuploads%2F2024%2F04%2F1.-Tiff-Macklem_feature_-Renaud-Philippe-Bloomberg-via-Getty-Images-scaled.jpg&amp;w=828&amp;q=80 828w, \/_next\/image?url=https%3A%2F%2Fcms.macleans.ca%2Fwp-content%2Fuploads%2F2024%2F04%2F1.-Tiff-Macklem_feature_-Renaud-Philippe-Bloomberg-via-Getty-Images-scaled.jpg&amp;w=1080&amp;q=80 1080w, \/_next\/image?url=https%3A%2F%2Fcms.macleans.ca%2Fwp-content%2Fuploads%2F2024%2F04%2F1.-Tiff-Macklem_feature_-Renaud-Philippe-Bloomberg-via-Getty-Images-scaled.jpg&amp;w=1200&amp;q=80 1200w, \/_next\/image?url=https%3A%2F%2Fcms.macleans.ca%2Fwp-content%2Fuploads%2F2024%2F04%2F1.-Tiff-Macklem_feature_-Renaud-Philippe-Bloomberg-via-Getty-Images-scaled.jpg&amp;w=1920&amp;q=80 1920w, \/_next\/image?url=https%3A%2F%2Fcms.macleans.ca%2Fwp-content%2Fuploads%2F2024%2F04%2F1.-Tiff-Macklem_feature_-Renaud-Philippe-Bloomberg-via-Getty-Images-scaled.jpg&amp;w=2048&amp;q=80 2048w, \/_next\/image?url=https%3A%2F%2Fcms.macleans.ca%2Fwp-content%2Fuploads%2F2024%2F04%2F1.-Tiff-Macklem_feature_-Renaud-Philippe-Bloomberg-via-Getty-Images-scaled.jpg&amp;w=3840&amp;q=80 3840w\" src=\"https:\/\/macleans.ca\/_next\/image?url=https%3A%2F%2Fcms.macleans.ca%2Fwp-content%2Fuploads%2F2024%2F04%2F1.-Tiff-Macklem_feature_-Renaud-Philippe-Bloomberg-via-Getty-Images-scaled.jpg&amp;w=3840&amp;q=80\"\/><\/p>\n<p><span class=\"all-small-caps text-grey\"> <!-- -->Renaud Philippe via Getty Images<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"flex justify-end\">\n<p><span class=\"all-small-caps text-grey\"> <!-- -->Renaud Philippe via Getty Images<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"max-w-[640px] mx-auto pb-20 px-20 pt-20\">\n<div class=\"mb-8 flex gap-6\">\n<div class=\"relative 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group-last:pb-0 w-full font-light group\"><span>LinkedIn<\/span><\/button><\/li>\n<li class=\"border-b border-b-grey-light text-dark last:border-b-0 group\"><button class=\"flex items-center gap-10 py-7 group-last:pb-0 w-full font-light group\"><span>Whats<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a><\/span><\/button><\/li>\n<li class=\"border-b border-b-grey-light text-dark last:border-b-0 group\"><button class=\"flex items-center gap-10 py-7 group-last:pb-0 w-full font-light group\"><span>Reddit<\/span><\/button><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"uppercase text-xs leading-normal font-sans text-grey font-lightmedium\">April 1, 2024<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"wp-block wp-block-core\">\n<p class=\"has-drop-cap     undefined\"><strong>In Canada, you can\u2019t escape winter,<\/strong> taxes or, these days, red-hot housing-market inflation, whether you\u2019re in a big city or a small town. The benchmark price for a single-family house in Greater Vancouver is now $2 million. Some bungalows in rural P.E.I. have doubled in price since the start of the pandemic. Renting in Toronto has become so competitive that tenants require a spotless resum\u00e9. Homelessness has skyrocketed everywhere.\u00a0<\/p>\n<\/div>\n<div class=\"wp-block wp-block-core\">\n<p class=\"     undefined\">At the centre of the housing fracas is Bank of Canada governor Tiff Macklem, who in mid-2022 began steadily raising the central bank\u2019s interest rates in a bid to slow the economy and ratchet down inflation. Rates now stand at five per cent, double where they were when he began raising them. Higher interest rates have driven the average mortgage payment 30 per cent higher in the past year, squeezing the budgets of homeowners renewing mortgages and shattering the hopes of those looking to enter the housing market. Besides burying homeowners under unprecedented levels of mortgage debt, the hikes have also exacerbated rental-housing shortages by making it more expensive for builders to borrow money to break ground on new developments.\u00a0<\/p>\n<\/div>\n<div class=\"wp-block wp-block-core\">\n<p class=\"     undefined\">The good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>, of course, is that the rate hikes have helped to cool inflation from 8.1 per cent in 2022 down to 2.9 per cent this February. And Canadians should remember that it was due to Macklem that rates were so low in the first place. A 62-year-old Montrealer, he held his first job at the Bank of Canada, as a financial analyst, in 1984. He climbed the ranks, eventually serving as the bank\u2019s No. 2 between 2010 and 2014. During that time, he and former bank governor Mark Carney shielded the country from economic meltdown in the wake of the 2008 recession by holding interest rates down. Macklem repeated the move when he became governor in 2020, dropping borrowing rates to almost zero to spur spending and avoid collapse due to the pandemic. Both times, he helped save Canada from immediate financial disaster.\u00a0<\/p>\n<\/div>\n<div class=\"wp-block wp-block-core\">\n<p class=\"     undefined\">It\u2019s not lost on Macklem that, today, the road to his target two per cent inflation rate is becoming a harder one for homeowners to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a>. He talks about it like a collective national pilgrimage to the top of Everest. \u201cThe target is in sight,\u201d he\u2019s said, and \u201cwe have to stay the course.\u201d The problem is that for many Canadians, the air up there is getting thin. Household debt in Canada\u2014the highest of all G7 countries\u2014<br \/>is now greater than its entire GDP, and 75 per cent of that debt comes from loans.\u00a0<\/p>\n<\/div>\n<div class=\"wp-block wp-block-core\">\n<p class=\"     undefined\">Things will likely get much worse; more than $1 trillion in mortgages will be renewed at higher interest rates between now and 2026, raising payments by 35 to 50 per cent. Mortgage defaults are still low, but banks are readying for rising delinquencies in the months to come. Potential buyers, meanwhile, are simply staying out of the market. Home sales in Toronto have sunk into recessionary territory, despite the fact that a much-feared recession hasn\u2019t materialized. Would-be homebuyers have crowded the rental market instead, squeezing vacancy rates and spiking rental prices from coast to coast. Others are buying property elsewhere: Canadians funnelled US$6.6 billion into homes in the U.S. between April of 2022 and March of 2023; only Chinese buyers have spent more on American real estate.\u00a0<\/p>\n<\/div>\n<div class=\"wp-block wp-block-core\">\n<p class=\"     undefined\">Macklem\u2019s relative anonymity is long gone. Premiers in Ontario, British Columbia and Newfoundland and Labrador wrote to him last September to urge him to stop raising interest rates. When he did hold them steady, Finance Minister Chrystia Freeland publicly applauded him. But Macklem has said he is not allowing public sentiment to sway his plans, and that the Bank of Canada is not ultimately responsible for the housing crunch. \u201cHousing affordability is a significant problem in Canada, but not one that can be fixed by raising or lowering interest rates,\u201d he said recently in a speech. In his view, monetary policy can\u2019t clean up the mess caused by housing shortages, zoning restrictions, delays in development approval processes and a lack of skilled construction workers.<\/p>\n<\/div>\n<div class=\"wp-block wp-block-core\">\n<p class=\"     undefined\">Regardless, Macklem\u2019s next move will be crucial. Lowering rates too fast could flood the housing market with new buyers, contributing to renewed housing inflation and maybe even the kind of outlandish bidding wars and runaway home prices we saw just a couple of years ago. But keeping rates high will drive more would-be buyers toward already oversaturated rental markets and raise the risk of defaults, home foreclosures and more personal mi<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a>. As far as Macklem is concerned, he is not the main character in Canada\u2019s housing story. But anything he does will have a major, material and immediate effect on thousands or millions of Canadians. For now, all we can do is wait and watch.<\/p>\n<\/div>\n<div class=\"wp-block wp-block-core\">\n<figure class=\"wp-block-image aligndefault \"><img alt=\"alt tag missing\" loading=\"lazy\" width=\"600\" height=\"400\" decoding=\"async\" data-nimg=\"1\" style=\"color:transparent\" src=\"\"\/><figcaption class=\"w-full text-left\"\/><\/figure>\n<\/div>\n<div class=\"wp-block wp-block-core\">\n<p class=\"     undefined\">This story appears in the May issue of\u00a0<em>Maclean\u2019s<\/em>. You can buy the issue\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/canadianmags.ca\/products\/macleans-may-2024\">here<\/a>\u00a0or subscribe to the magazine\u00a0here.<\/p>\n<\/div>\n<div class=\"wp-block \">\n<div class=\"ad-free-zone laptop:px-0\">\n<div class=\"max-w-screen-desktop mx-auto px-20 tablet:px-40\">\n<div class=\"wp-newsletter-signup max-w-screen-desktop mx-auto w-full py-20 my-20 tablet:my-40 tablet:py-80 &#10;          border-t-3 tablet:border-t-[6px] border-dark bg-white\">\n<div class=\"flex flex-col tablet:flex-row max-w-[800px] w-full mx-auto tablet:items-center\">\n<div class=\"flex flex-col tablet:w-7\/12 space-y-10 text-center tablet:text-left px-20\">\n<h2 class=\"text-red\"><span class=\"ez-toc-section\" id=\"Get_the_Best_of_Macleans_straight_to_your_inbox\"><\/span>Get the Best of <em>Maclean\u2019s<\/em> straight to your inbox.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"newsletter-subtitle font-sans text-sm leading-xm tablet:leading-smm font-lightmedium text-grey\">Sign up for news, commentary, analysis and promotions. Join 80,000+ Canadian readers.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/macleans.ca\/society\/the-power-list-tiff-macklem\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>He\u2019s damned if he raises interest rates and damned if he doesn\u2019t. Our central banker is the reluctant main character in Canada\u2019s housing drama. BY ALEX CYR Renaud Philippe via Getty Images Renaud Philippe via Getty Images Copy Link Email Facebook X LinkedIn WhatsApp Reddit April 1, 2024 In Canada, you can\u2019t escape winter, taxes&#8230;<\/p>\n","protected":false},"author":1,"featured_media":617723,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/cms.macleans.ca\/wp-content\/uploads\/2024\/04\/Cover_0524_FINAL.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-617722","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/617722","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=617722"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/617722\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/617723"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=617722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=617722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=617722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}