U.S. holds rate steady in split with Ottawa

Long-term divergence could spell trouble, experts say

- ROSA SABA

Federal Reserve chair Jerome Powell said Wednesday that the U.S.interest rate will hold steady. The move comes a week after the Bank of Canada made its first cut in more than four years.

With monetary policy at the Bank of Canada and U.S. Federal Reserve diverging, experts say it could set the Canadian dollar up for volatility down the road.

In a widely expected move, the Fed on Wednesday afternoon held its key rate steady, a week after the Bank of Canada announced a cut.