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Israeli media: Intense US efforts are being made to resolve differences, such as the issue of the Israeli presence on Mount Hermon and in southern Syria
Israeli media: The security agreement means amending the disengagement agreement, which will also address the Druze issue
Israeli media: Attempts to reach a security agreement between 'Israel' and Syria were among the topics discussed at the Paris meeting
Israeli media: Sheikh Muwaffaq Tarif rejected a US proposal to join the recent tripartite meeting between Tom Barrack, al-Shaibani, and Dermer
Saba News Agency: Two martyred, five injured in a preliminary toll of the Israeli aggression on the Yemeni Oil Company station on Al-Sitteen Street in Sanaa
Senior Yemeni military source to Al Mayadeen: We observed a state of confusion among the enemy's aircraft squadron after Yemeni air defenses intercepted the attack
Senior Yemeni military source to Al Mayadeen: The Yemeni air defense forces succeeded in neutralizing a squadron of enemy aircraft and prevented airstrikes on some governorates
Senior Yemeni military source to Al Mayadeen: Our air defenses and missile forces forced a formation of enemy aircraft to flee the airspace
Member of the Ansar Allah Political Bureau, Mohammed al-Bukhaiti: The Israeli aggression on Yemen will not deter us from continuing to support Gaza, no matter the sacrifices
Al Mayadeen's correspondent: The Israeli aggression targeted the Yemeni Oil Company station on Al-Sitteen Street, southwest of the capital, Sanaa, with several raids

US economy uncertain amid growth, inflation concerns: Powell

  • By Al Mayadeen English
  • Source: Agencies
  • 14 Dec 2023 00:28
3 Min Read

The US economy is encountering obstacles characterized by low treasury yields, the prospect of rate hikes, and a trend toward more conservative consumer spending.

  • x
  • Federal Reserve Board Chair Jerome Powell speaks during a news conference about the Federal Reserve's monetary policy at the Federal Reserve, Wednesday, Dec. 13, 2023, in Washington. (AP)
    Federal Reserve Board Chair Jerome Powell speaks during a news conference about the Federal Reserve's monetary policy at the Federal Reserve, Wednesday, Dec. 13, 2023, in Washington. (AP)

Federal Reserve Chairman Jerome Powell stated on Wednesday that while the current status of the US economy doesn't suggest a recession, uncertainties regarding growth and inflation make future developments unpredictable.

"I think you can say that there's little basis for thinking that the economy is in a recession now," Powell said. 

He further emphasized that a recession within the next year is a possibility, though not guaranteed, and there are ongoing risks.

"I think there's always a probability that there will be a recession in the next year and it's a meaningful probability, no matter what the economy's doing, so it's always a real possibility. This result is not guaranteed. It is far too early to declare victory. And there are certainly risks. It's certainly possible that the economy will behave in an unexpected way. It has done that repeatedly in the post-pandemic period," he said.

Read more: Fed reports US economic slowdown amid efforts to tackle inflation

Earlier in the day, the Federal Reserve said it maintained interest rates at 5.5% for the third time since July.

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Recent data revealed a 5.2% growth in the US economy in the third quarter of 2023, exceeding the initially reported 4.9% for the quarter, with the GDP growth for the entire year of 2022 recorded at 2.1%.

But Al Mayadeen analysts estimate that the data is misleading of the real situation on the ground. The longer the Fed keeps interest rates high, the inevitable lag effect will impact the economy.

They also anticipate several headwinds that will keep borrowing costs higher for a longer duration in the US.

One of them is continued war spending. The government will likely borrow another $100 billion from investors to aid Ukraine and "Israel."

This implies that more bonds will be issued to the market, increasing the supply of US debt, and bond yields will remain high.

Just recently, US President Joe Biden has pledged to send an additional $200 million in aid to Ukraine, as discussed in a meeting with Ukrainian President Volodymyr Zelensky on Tuesday. 

This comes after Congress Republicans blocked a bill to send military aid worth almost $60 billion to Kiev. Republicans are ever-more openly rejecting the need to fund Ukraine, saying that President Joe Biden needs to devote more attention to domestic security, particularly to stopping illegal migration over the US-Mexican border.

  • Federal reserve
  • US Federal Reserve
  • US interest rate hikes
  • jerome powell
  • US economy
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