The Globe and Mail reports in its Saturday, Sept. 21, edition that on Tuesday, Statistics Canada reported that the annual inflation rate reached the Bank of Canada's 2-per-cent target in August. The Globe's Mark Rendell writes that the following day, the U.S. Federal Reserve made a half-percentage-point cut to its federal funds rate, lowering the range to 4.75 per cent to 5 per cent and signalling more rate cuts ahead. The consecutive events signal a milestone for the North American economy as both Canada and the United States appear to be on track for a "soft landing," allowing their central banks to recalibrate monetary policy for the next phase of the economic cycle. Of the jumbo rate cut from the Fed, Canadian Imperial Bank of Commerce economist Avery Shenfeld said, "This is really planting the victory flag in the battle against inflation." In Canada, headline inflation hit the target in August, partly due to falling oil prices. However, it is expected to fluctuate around the target in the coming months. In the U.S., headline inflation is still about 2.5 per cent. Both central banks want to bring borrowing costs down fairly quickly to avoid harm to employment and exceed the 2-per-cent inflation target.