Fed Reaffirms Inflation Focus as Canadian Markets Surge

Canadian markets posted gains on Thursday after the US Federal Reserve reaffirmed its focus on bringing inflation under control. The Fed's decision helped spark a broader global rally, with rising gold prices also contributing to improved sentiment.

Bank of Canada Governor Tiff Macklem warned that inflation is likely to remain elevated and indicated the central bank stands ready to increase rates further if necessary.

The Canadian dollar remained at 71.48 cents US since Wednesday, while US crude futures traded $1.17 lower at US$101.30 a barrel.

Meanwhile, Prime Minister Mark Carney's address to the European Parliament is being watched closely, as discussions over the EU's proposed associate membership for Canada continue to strain relations with Washington.