Carney guided the G7 through the 'diplomatic Rockies,' says expert
OTTAWA — Prime Minister Mark Carney pulled off a successful performance hosting the G7 summit in Kananaskis, Alta., say some world leaders and foreign policy experts commenting on his perceived pragmatism and savviness.
Fen Osler Hampson, international affairs professor at Carleton University, said Carney guided the G7 "through the diplomatic Rockies," navigating "shifting weather" on the global front and avoiding "avalanches and treacherous cliffs."
This year's summit took place amid escalating violence between Israel and Iran, which pushed U.S. President Donald Trump to leave Alberta a day early. On Monday, G7 leaders published a statement affirming that Israel "has a right to defend itself" and that Iran "can never have a nuclear weapon."
Hampson described Carney as pragmatic and said he was "quite deft" in handling the G7 statement on the Middle East.
"He was able to keep Trump on board on that statement," Hampson said.
Hampson also said that productive sessions continued on G7 priorities, like global security, despite Trump's departure.
During the two-day summit, Carney held bilateral meetings with several world leaders, including Trump. Carney's office said Monday that the U.S. president agreed to have a deal on a new economic and security relationship between Canada and the U.S. by mid-July.
Ontario Premier Doug Ford said at a press conference Tuesday that he supports how Carney is dealing with Trump.
"He's dealing with a different type of cat with Trump. You don't know which way this guy's going to bounce from morning to morning," Ford said. "He wakes up, eats his Wheaties and all of a sudden everything's changing. So I'm going to back the prime minister 100 per cent and I know all the premiers will. We need to get a deal."
Ford said it was "good news" that Carney and Trump agreed to put a deal together over the next month. Despite Trump's early departure, Ford said "at least they had an opportunity to meet, and I'm confident that we'll get a deal done."
Carney seemed to impress several world leaders who attended this year's summit.
Speaking to reporters on Air Force One after leaving the G7 summit, Trump said he had a "good time."
French President Emmanuel Macron, who will host the G7 next year, said Tuesday that Carney fulfilled his mission as G7 host to preserve the unity of the multilateral organization.
"We shouldn't ask the Canadian presidency to resolve every issue on earth today, that would be unfair," said Macron. "But he held the group together. He did it with his characteristic elegance and determination."
Indian Prime Minister Narendra Modi said on social media that he had an "excellent" meeting with Prime Minister Mark Carney. He says he complimented him and the Canadian government for "successfully" hosting the summit.
Canada and India agreed to designate new high commissioners and restore regular diplomatic services to citizens in both countries.
Canada expelled six Indian diplomats and consular officials last fall, following news that law enforcement had linked agents of the Indian government to a targeted campaign against Canadian citizens.
At the G7 summit, Carney also pledged $4.3 billion in new support for Ukraine's defence, including $2 billion for weapons like drones, ammunition and armoured vehicles and a $2.3-billion loan to help Ukraine rebuild its infrastructure.
Hampson said the announcement of the support package for Ukraine highlights that Carney is positioning Canada as a leading supporter of Ukraine among G7 countries.
"He's showing diplomatic agility, a results-driven approach to this meeting," Hampson said.
Ahead of the summit, Carney faced some backlash for handing out invitations to some world leaders, like Modi. More than 100 Sikhs gathered in Calgary on Monday to condemn Modi ahead of his visit to the G7 leaders' summit.
Hampson says "there never was a good time to try to turn the page with the Indians" but that other countries are always invited to the summit.
"It would be odd not to have the world's fifth largest economy at that meeting, right?," he said.
Srdjan Vucetic, a professor at the University of Ottawa's graduate school of public and international affairs, said any criticisms of Carney's invitations are likely going to be "muted" and that he can claim he's starting his role as prime minister "pragmatically."
Vucetic said Carney did "great" at the summit and that he proved he was "savvy" during his meeting with Trump, including when he jumped in to interrupt Trump's rant to move on to other topics.
This report by The Canadian Press was first published June 18, 2025.
Catherine Morrison, The Canadian Press
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Los Angeles Times
27 minutes ago
- Los Angeles Times
Senate Republicans hold hearing on Biden's mental fitness as Democrats boycott
WASHINGTON — Nearly six months after Joe Biden left the White House, Senate Republicans are still scrutinizing his presidency, kicking off the first in what's expected to be a series of congressional hearings this year on his mental fitness in office. Republicans on the Senate Judiciary Committee brought in three witnesses Wednesday — none of whom served in Biden's administration — to scrutinize his time in office, arguing that the former president, his staff and the media must be held accountable. Democrats boycotted the hearing and criticized Republicans for 'armchair-diagnosing' Biden when the committee could be looking into serious matters. Sen. John Cornyn of Texas, who co-chaired the hearing, said that they will aim to 'shine a light on exactly what went on in the White House during Biden's presidency.' 'We simply cannot ignore what transpired because President Biden is no longer in office,' Cornyn said. A spokesperson for Biden declined to comment on the hearing. It was the first in what could be several hearings about Biden in the coming months. Over in the House, the Oversight Committee has subpoenaed several of Biden's former staff members, along with his White House doctor, ordering him to testify at a June 27 hearing 'as part of the investigation into the cover-up of President Joe Biden's cognitive decline.' Questions about Biden's age and fitness erupted in the summer after his disastrous performance in a debate against Republican challenger Donald Trump, which ultimately led to the Democrat's withdrawal from the race. Even after Trump won back the presidency in November, Republicans have continued to hammer on Biden's age, citing in part new reporting about Biden that was published this year. Trump now alleges that Biden administration officials may have forged the former president's signature and taken sweeping actions without his knowledge, though he provided no evidence of that happening. Trump has ordered lawyers at the White House and the Justice Department to investigate. Republicans played clips during the hearing Wednesday of Democrats defending Biden. In the montage, the Democrats talk about how Biden was mentally sharp when he was in office. 'Most Democrats on this committee have chosen to all but boycott the hearing and have failed to call a single witness,' Sen. Eric Schmitt (R-Mo.) said. 'They have chosen to ignore this issue, like they ignored President Biden's decline.' Sen. Dick Durbin, the committee's top Democrat, criticized Republicans for holding a hearing on the last president at a time when there are 'numerous critical challenges facing the nation that are under our jurisdiction.' 'Apparently armchair-diagnosing former President Biden is more important than the issues of grave concern,' said Durbin of Illinois. After his opening remarks, Durbin played a video montage of his own — but with clips of Trump speaking that he said reflected the 'cognitive ability' of the current president. Durbin left the hearing after his opening remarks. Three witnesses testified: former White House Press Secretary Sean Spicer, former White House official Theodore Wold and University of Virginia law professor John Harrison. Spicer and Wold both served under Trump. Much of the focus was on Biden's alleged use of an autopen. Trump has repeated long-standing allegations that the Biden White House relied on an autopen to sign presidential pardons, executive orders and other key documents, claiming that its use cast doubt on their validity. Sen. Katie Britt (R-Ala.) also questioned Spicer on 'what mechanisms should we put in place' to hold the media accountable 'for not actually following what is clearly in front of them.' Cappelletti writes for the Associated Press.


CNET
28 minutes ago
- CNET
Fed Rate Cuts Unlikely This Summer. Are Lower Mortgage Rates Still Possible?
The Fed's interest rate decisions impact mortgages, but the relationship isn't straightforward. Tharon Green/CNET There's a wild amount of uncertainty in today's economy, but one thing is clear: The Federal Reserve isn't planning to lower interest rates this summer. Mortgage rates, which have been stuck near 7% for the past several months, are likely to stay higher for longer. On June 18, Fed officials voted to leave borrowing rates unchanged for a fourth consecutive meeting. Holding interest rates where they are allows the central bank to evaluate how President Trump's unpredictable tariff campaign, immigration policies and federal cutbacks affect both inflation and the job market. Often, what the central bank simply says about future plans can cause a stir in the housing market. Mortgage rates are driven by bond investors and a host of other factors, i.e., not directly determined by the Fed. "The mortgage market reacts fast to uncertainty, and we've got no shortage of it this summer," said Nicole Rueth, of the Rueth Team with Movement Mortgage. Why is the Fed not cutting interest rates? The Fed sets and oversees US monetary policy under a dual mandate to maintain price stability and maximum employment. It does this largely by adjusting the federal funds rate, the rate at which banks borrow and lend their money. When economic growth is weak and unemployment is high, the Fed lowers interest rates to encourage spending and propel growth. Reducing interest rates could also allow inflation to surge, which is generally bad for mortgage rates. Keeping rates high, however, increases the risk of a job-loss recession that would cause widespread financial hardship. If unemployment spikes -- a real possibility given rising jobless claims -- the Fed could be forced to implement interest rate cuts earlier than anticipated. "The Federal Reserve is in one of the trickiest spots in recent economic history," said Ali Wolf, Zonda and NewHomeSource chief economist. What is the forecast for interest rate cuts in 2025? On Wednesday, markets eyed the Fed's Summary of Economic Projections, which outlined two 0.25% rate cuts in 2025, unchanged from earlier estimates. But that's far from guaranteed. The updated forecast suggests that tariffs will push prices higher, suggesting that consumers have not yet felt the full effect of these import duties. "Everyone that I know is forecasting a meaningful increase in inflation in the coming months from tariffs, because someone has to pay for the tariffs," Fed Chair Jerome Powell said during a June 18 press conference. Inflation could prompt the central bank to forgo one (or both) of its projected rate cuts, which would keep mortgage rates high. Though Powell remains noncommittal on any specific time frame, financial markets still see a potential interest rate cut coming as early as this fall. Most housing market forecasts, which already factor in at least two 0.25% Fed cuts, call for 30-year mortgage rates to stay above 6.5% throughout 2025. "Average rates are likely to stay in the 6.75% to 7.25% range unless the Fed signals multiple cuts and backs up their policy with data," Rueth said. What factors affect mortgage rates? Mortgage rates move around for many of the same reasons home prices do: supply, demand, inflation and even the employment rate. Personal factors, such as a homebuyer's credit score, down payment and home loan amount, also determine one's individual mortgage rate. Different loan types and terms also have varying interest rates. Policy changes: When the Fed adjusts the federal funds rate, it affects many aspects of the economy, including mortgage rates. The federal funds rate affects how much it costs banks to borrow money, which in turn affects what banks charge consumers to make a profit. Inflation: Generally, when inflation is high, mortgage rates tend to be high. Because inflation chips away at purchasing power, lenders set higher interest rates on loans to make up for that loss and ensure a profit. Supply and demand: When demand for mortgages is high, lenders tend to raise interest rates. This is because they have only so much capital to lend in the form of home loans. Conversely, when demand for mortgages is low, lenders tend to slash interest rates to attract borrowers. Bond market activity: Mortgage lenders peg fixed interest rates, like fixed-rate mortgages, to bond rates. Mortgage bonds, also called mortgage-backed securities, are bundles of mortgages sold to investors and are closely tied to the 10-year Treasury. When bond interest rates are high, the bond has less value on the market where investors buy and sell securities, causing mortgage interest rates to go up. Other key indicators: Employment patterns and other aspects of the economy that affect investor confidence and consumer spending and borrowing also influence mortgage rates. For instance, a strong jobs report and a robust economy could indicate greater demand for housing, which can put upward pressure on mortgage rates. When the economy slows and unemployment is high, mortgage rates tend to be lower. Read more: Fact Check: Trump Doesn't Have the Power to Force Lower Interest Rates Is now a good time to get a mortgage? Even though timing is everything in the mortgage market, you can't control what the Fed does. "Forecasting interest rates is nearly impossible in today's market," said Wolf. Regardless of the economy, the most important thing when shopping for a mortgage is to make sure you can comfortably afford your monthly payments. More homebuying advice
Yahoo
28 minutes ago
- Yahoo
Investors see quick stock market drop if US joins Israel-Iran conflict
By Noel Randewich (Reuters) -Financial markets may be in for a "knee-jerk" selloff if the U.S. military attacks Iran, with economists warning that a dramatic rise in oil prices could damage a global economy already strained by President Donald Trump's tariffs. Oil prices fell nearly 2% on Wednesday as investors weighed the chance of supply disruptions from the Israel-Iran conflict and potential direct U.S. involvement. The price of crude remains up almost 9% since Israel launched attacks against Iran last Friday in a bid to cripple its ability to produce nuclear weapons. With major U.S. stock indexes trading near record highs despite uncertainty about Trump's trade policy, some investors worry that equities may be particularly vulnerable to sources of additional global uncertainty. Chuck Carlson, chief executive officer at Horizon Investment Services, said U.S. stocks might initially sell off should Trump order the U.S. military to become more heavily involved in the Israel-Iran conflict, but that a faster escalation might also bring the situation to an end sooner. "I could see the initial knee-jerk would be, 'this is bad'," Carlson said. "I think it will bring things to a head quicker." Wednesday's dip in crude, along with a modest 0.3% increase in the S&P 500, came after Trump declined to answer reporters' questions about whether the U.S. was planning to strike Iran but said Iran had proposed to come for talks at the White House. Adding to uncertainty, Iranian Supreme Leader Ayatollah Ali Khamenei rejected Trump's demand for unconditional surrender. U.S. Treasury yields fell as concerns over the war in Iran boosted safe haven demand for the debt. The U.S. military is also bolstering its presence in the region, Reuters reported, further stirring speculation about U.S. intervention that investors fear could widen the conflict in an area with critical energy resources, supply chains and infrastructure. With investors viewing the dollar as a safe haven, it has gained around 1% against both the Japanese yen and Swiss franc since last Thursday. On Wednesday, the U.S. currency took a breather, edging fractionally lower against the yen and the franc. 'I don't think personally that we are going to join this war. I think Trump is going to do everything possible to avoid it. But if it can't be avoided, then initially that's going to be negative for the markets,' said Peter Cardillo, Chief Market Economist at Spartan Capital Securities in New York. "Gold would shoot up. Yields would probably come down lower and the dollar would probably rally." Barclays warned that crude prices could rise to $85 per barrel if Iranian exports are reduced by half, and that prices could rise about $100 in the "worst case" scenario of a wider conflagration. Brent crude was last at about $76. Citigroup economists warned in a note on Wednesday that materially higher oil prices "would be a negative supply shock for the global economy, lowering growth and boosting inflation—creating further challenges for central banks that are already trying to navigate the risks from tariffs." Trump taking a "heavier hand" would not be a surprise to the market, mitigating any negative asset price reaction, Carlson said, while adding that he was still not convinced that the U.S. would take a heavier role. Trades on the Polymarket betting website point to a 63% expectation of "U.S. military action against Iran before July", down from as much as an 82% likelihood on Tuesday, but still above a 35% chance before the conflict began last Friday. The S&P 500 energy sector index has rallied over 2% in the past four sessions, lifted by a 3.8% gain in Exxon Mobil and 5% rally in Valero Energy. That compares to a 0.7% drop in the S&P 500 over the same period, reflecting investor concerns about the impact of higher oil prices on the economy, and about growing global uncertainty generated by the conflict. Turmoil in the Middle East comes as investors are already fretting about the effect of Trump's tariffs on the global economy. The World Bank last week slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, saying that higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies. Defense stocks, already lifted by Russia's conflict with Ukraine, have made modest gains since Israel launched its attacks. The S&P 500 Aerospace and Defense index hit record highs early last week in the culmination of a rebound of over 30% from losses in the wake of Trump's April 2 "Liberation Day" tariff announcements. Even after the latest geopolitical uncertainty, the S&P 500 remains just 2% below its February record high close. "Investors want to be able to look past this, and until we see reasons to believe that this is going to be a much larger regional conflict with the U.S. perhaps getting involved and a high chance of escalating, you're going to see the market want to shrug this off as much as it can,' Osman Ali, global co-head of Quantitative Investment Strategies, said at an investor conference on Wednesday.