The Financial Post reports in its Tuesday edition that if the Bank of Canada lowers interest rates sooner and more substantially than the Federal Reserve, the loonie may be in for a challenging time. The Post's Gigi Suhanic writes economists say this situation is becoming more probable as the U.S. economy continues to outperform. In a sign of what could come, the loonie fell more than a half per cent against the U.S. dollar in the wake of the Bank of Canada's interest rate announcement last Wednesday, during which Governor Tiff Macklem said a cut at the June rate meeting was now "within the realm of possibilities." That put the weakened loonie in the crosshairs of a stronger American currency and the BOC possibly at the mercy of a Fed that appears in no rush to start cutting. National Bank economists Stefane Marion and Kyle Dahms said in an April note on the currency, "The Canadian dollar's lacklustre performance against the U.S. dollar has been a notable curiosity in 2024, particularly given the recent spike in oil prices." The pair are calling for the loonie to fall to 71 U.S. cents in the third quarter and 70 U.S. cents in the fourth quarter with Tuesday's federal budget "a potential wild card for the currency."