Below, you will find our monthly market update and relative information that pertains to the current state of the economy.

Market Update

• All the market indices except the NASDAQ closed higher than the beginning of the month.
  • • The S&P 500 finished at 5,911.69 pts (6.15%)
    • The DOW finished at 42,270.07 pts (3.94%)
    • The NASDAQ finished at 19,133.77 pts (9.67%)
    • The TSX finished at 26,175.05 pts (5.37%)

Canada

Monetary Policy

• On June 4^th, The Bank of Canada (“BoC”) decided to maintain the overnight lending rate.
  • Currently, the overnight rate is 2.75%, the Bank Rate is at 3.00%, and the deposit rate is at 2.70%.
  • “With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts.”
  • The next interest rate announcement will take place on July 30^th, 2025.

Economic Data

• Canada’s economy grew by 2.2%, annualized, in the first quarter of 2024. This outpaced the downwardly revised 2.1% growth in the final quarter of 2024. Economists were expecting growth of 1.7%.

• • Canada’s economy got a boost from a surge in exports as purchasers in the U.S. and other major economies frontloaded orders before tariffs came into effect. As well, household consumption slowed as trade uncertainty weighed on consumer confidence.

• Canada’s annual inflation rate slowed considerably to 1.7% in April from 2.3% in the previous month.
  • This marked Canada’s lowest rate of inflation since September 2024 as the end of the carbon tax led to a sharp decline in energy prices. Gasoline prices dropped by 18.1% year-over-year, despite oil prices advancing in April.

U.S.

Monetary Policy

• The Fed announced that there was no change to its federal rate in its May meeting.
  • The target range for the federal funds rate is 4.25-4.50%.
• Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace.
• Uncertainty about the economic outlook has increased further. The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.
• The next Fed meeting will take place on June 17^th-18^th.

Economic Data

• The U.S. inflation rate eased to 2.3% in April from 2.4% in March, reaching its lowest level since February 2021. This marked the third straight month of moderating inflationary pressures. Energy prices continued to fall while the growth in prices for food and shelter slowed.
  • The annual core inflation rate was unchanged at 2.8% in April, remaining at its lowest level since 2021.
• The U.S. economy added 139,000 jobs in May, which topped economists’ expectations but fell short of the 147,000 jobs added in the previous month.
  • The U.S. unemployment rate has maintained a 4.2% rate from March into May of this year.

Global

• Europe’s economy grew by 0.3% in the first quarter but is expected to be hindered by trade tensions. The EU is hoping to open trade and investment opportunities with the U.S.
• The People’s Bank of China (“PBOC”) lowered its one- and five-year loan prime rates by 10 basis points to 3.00% and 3.50%, respectively, at its May fixing.
  • With trade tensions expected to hinder China’s already fragile economy, the PBOC took measures to help support the economy.
• An advanced estimate showed the U.K. economy grew by 0.7% over the first quarter of 2025, marking its fastest pace of quarterly growth since the first quarter of 2024.
  • Contributing to the increase was a rise in services sector activity, particularly retail trade, which rose by 1.5%. Net exports were another key contributor to growth.

Notes From our Firm

• Our firm is excited to announce a significant milestone: Matt Milner, Jay Fast, and Brandon Currie have joined Doug Smith as partners in the firm.
• This evolution in leadership highlights C.R. Smith Financial’s ongoing dedication to long-term planning, sustainability, and the continued delivery of trusted guidance for individuals, families, and businesses both locally and across Canada.
• With deep roots in the community and a tradition of service dating back to 1974, the firm’s new partnership structure ensures continuity for clients and reflects a commitment to serving future generations with integrity and personalized solutions.
• We invite you to review the full press release for more details on this exciting development and what it means for the future of C.R. Smith Financial (please see the attached document).

As always if you have any questions, please feel free to reach out to us. Or, if you know someone who would like an opinion on their investments or insurance, please connect us! There is no better compliment than a referral from one of our current clients.

Yours Truly,

The Team, C.R. Smith Financial

Community, Respect, Service & Financial Integrity