Prime Minister Justin Trudeau tapped Chrystia Freeland to be Canada's first female finance minister on Tuesday as an ethics scandal that clipped her predecessor's wings reverberates through the government.

Freeland received a standing ovation after being sworn in at a small ceremony in Ottawa.

Guests socially distanced, wore face masks and Freeland greeted Trudeau with an elbow bump after taking the oath of office, telling reporters that it was "about time that we broke that glass ceiling."

The prime minister later announced the suspension of parliament until September 23, when his minority government will lay out a new direction and test its support as confronts the impact of the coronavirus pandemic.

Freeland named Canada's first female finance minister
Chrystia Freeland is expected to be appointed Canada's first female finance minister as the government struggles to shrug off accusations of misconduct. Photo: AFP / Dave Chan

We do not want an election," Trudeau said, "but it's obvious that the Throne Speech we gave eight months ago (outlining the government's agenda) is no longer relevant for the reality that Canadians are living and that our government is facing."

"We need to reset the approach of this government to build back better," he said, "and we need to present that to Parliament and gain the confidence of Parliament to move forward on this ambitious plan."

Freeland, 52, has held key posts in the Liberal government including deputy prime minister -- a role she keeps -- and foreign minister, as well as leading free trade talks with the US and Mexico.

The former journalist, first elected in 2015, takes on the top finance job as Canada goes through its worst economic crisis since the Second World War.

Freeland named Canada's first female finance minister
Chrystia Freeland was named Canada's first female finance minister at a small ceremony Tuesday at Rideau Hall, the official residence of Governor General Julie Payette. Photo: POOL / Sean KILPATRICK

"I think all Canadians understand that the restart of our economy needs to be green, it needs to be equitable (and) it needs to be inclusive," she said.

After five years in the post, Bill Morneau -- under pressure from opposition parties -- announced his surprise resignation from politics late Monday.

The temporary shutdown of parliament effectively ends committee inquiries into the WE Charity scandal dogging the Liberals.

"It seems like the government is trying to press the reset button, and try to perhaps, put the charity affair behind them and get a fresh start with the electorate," Stephanie Chouinard, a politics professor at the Royal Military College of Canada, told public broadcaster CBC.

Bill Morneau resigned on Monday
Bill Morneau, seen here in Ottawa in March, resigned as Canada's finance minister late Monday. Photo: AFP / Dave Chan

"I think all Canadians understand that the restart of our economy needs to be green, it needs to be equitable (and) it needs to be inclusive," she said.

After five years in the post, Bill Morneau -- under pressure from opposition parties -- announced his surprise resignation from politics late Monday.

The temporary shutdown of parliament effectively ends committee inquiries into the WE Charity scandal dogging the Liberals.

"It seems like the government is trying to press the reset button, and try to perhaps, put the charity affair behind them and get a fresh start with the electorate," Stephanie Chouinard, a politics professor at the Royal Military College of Canada, told public broadcaster CBC.