A sharp slowdown in the pace of US inflation, falling crude oil prices is expected to reduce interest rate hikes further by urdu jahan
A sharp slowdown in the pace of US inflation, falling crude oil prices is expected to reduce interest rate hikes further
Record inflation in the US is slowing. The consumer price index (CPI) for December 2022, announced on the 12th, rose by 6.5% year-on-year, falling below the previous month for the sixth consecutive month and reaching the lowest level since October 2021. It's still well above the 2% target, but the momentum is clearly slowing. The U.S. Federal Reserve Board (FRB), which has continued to raise interest rates at a rapid pace to combat inflation, narrowed the rate of increase from 0.75% to 0.5% at its December meeting, but will raise it further to 0.25% at its next meeting. There is a growing view that it will shrink to 10%.
"Good news for six months in a row." At a press conference held at the White House on the 12th, US President Biden announced that the inflation rate, which has hit the lives of Americans, has continued to decline after peaking in June 2022 (up 9.1%). welcomed.
The biggest factor is the drop in oil prices. Crude oil prices slumped due to the view that demand would decline due to the deterioration of the global economy, and gasoline prices, which had been a symbol of inflation in the United States, fell. In June, 1 gallon (approximately 3.8 liters) = 5 dollars (approximately 650 yen) on average across the United States, a new all-time high.
Looking at the CPI breakdown for December, the energy price rose by 7.3% year-on-year, slowing down from the previous month's 13.1% rise. Gasoline prices fell 1.5%, below the same month last year. Used car prices also dropped 8.8%, significantly lower than in the same month last year, when the price of new cars stagnated due to a shortage of semiconductors.
On the other hand, services such as customer service increased by 7.0% year-on-year, accelerating from the previous month (up 6.8%). Housing expenses such as rent also increased by 7.5% from the previous month (up 7.1%), becoming a persistent cause of inflation.
The Fed raised interest rates by 0.75%, triple the previous rate, for four consecutive meetings until the November meeting in order to curb record-breaking inflation. Reduced to 0.5%. Since March, interest rates have been raised for seven consecutive meetings, raising the policy interest rate target to 4.25% to 4.5%. Chairman Powell has indicated that he intends to continue raising interest rates, albeit at a slower pace.
Philadelphia Fed President John Harker said in a speech on the 12th that the Fed will raise interest rates several times, but the 0.75% rate hike is definitely over. The manuscript of the speech was prepared before the announcement of the CPI in December, but there is a growing view in the market that the rate hike will return to the Fed's "cruising speed" of 0.25%.
Brazil's ex-president's US visa revoke supporters in congressional attack
In the incident in which supporters of the right-wing former President Bolsonaro attacked the federal parliament in Brasilia, the capital of South America, Brazil, the Democratic Party members of the US House of Representatives asked US President Biden on the 12th to issue a visa for Bolsonaro, who is staying in the US. I applied for the cancellation of my visa. It also asked the Ministry of Justice and others to investigate whether there were any supporters of the case. In January 2021, former President Trump supporters stormed the US Capitol. Democratic lawmakers are believed to want to link the Brazilian incident with Trump.
Forty-six Democratic lawmakers signed a statement expressing "deep concern" over Saturday's attacks on the federal parliament, presidential palace and Supreme Court in Brasilia. "We should not allow Mr. Bolsonaro and others to escape to the United States to avoid being brought to justice for their crimes," and asked Mr. Biden about the legal basis of the visa held by Mr. requested.
Bolsonaro, who was defeated in the presidential election last October, left the country on December 30 and arrived in Florida. He did not attend the inauguration of leftist President Lula on January 1. He is believed to have entered the United States on an A1 visa issued to the head of state.
When asked about Mr Bolsonaro's visa by the press on the 9th, a spokesman for the US State Department Price said in general terms that if an "A1 visa holder" is not engaged in official business, he will leave the country within 30 days. , indicated the recognition that it is necessary to switch to another visa.
"If requested, we should cooperate fully with the Brazilian government's investigation," the Democratic lawmaker said in the same statement. He also requested the Department of Justice and others to investigate whether there was anyone who supported the incident financially.
In the United States, on December 22, last year, a special committee of the House of Representatives released its final report on the attack on the Capitol. Trump was accused of inciting a crowd by claiming "election fraud" to overturn the results of the presidential election. Bolsonaro, who has been called the "Brazil's Trump" because he is a follower of Mr. Trump, has repeatedly claimed that the election was "rigged" even before the presidential election.
Lawmakers from both the United States and Brazil discussed the attack in Brazil on Thursday, Reuters reported. Among those in attendance was Rep. Thompson, chairman of the House Select Committee, a source familiar with the matter said. It is possible that the U.S. House of Representatives Special Committee has shared with the Brazilian side the background to the final report.
Biden allegations of exfiltration of secrets boost Republicans' serious pursuit of government
The US House of Representatives has begun deliberations on a new session, and the Republican Party, which has regained the majority, has begun to seriously pursue the Democratic Party's Biden administration. In addition to existing themes such as suspicions of fraudulent tax treatment of President Biden's second son, Mr. Hunter, and confusion at the time of the withdrawal of US troops from Afghanistan in 2021, Mr. Biden's home, etc. The problem that I had brought to . The Republican Party is on the offensive after the previous session, which was on the defensive over the issue of former President Trump.
“Trump and Biden are treated very differently [over the issue of taking classified documents]. Make sure the law is applied equally." House Speaker McCarthy said at a news conference on Wednesday that he would focus on investigating "abuse of power" by the administration.
Republicans have hitherto described the probe into Trump over allegations that he tried to overturn the results of the 2020 presidential election and the issue of taking official documents to his private residence, saying, "This is an arbitrary investigation that takes into account the intentions of the Democrats." and criticized. He indicated that he would set the "weaponization of the Federal Bureau of Investigation (FBI)" as one of the themes of his pursuit of the administration.
What spurred on that was the discovery of the issue of Mr. Biden taking out confidential documents. Confidential documents were found in a private office in Washington just before the November 2022 midterm elections, but the matter was not immediately disclosed, raising suspicions that they deliberately hid it out of concern that it might adversely affect the election. ing. On the 12th, it was revealed that confidential documents were also found in the garage and archives of his home in eastern Delaware in December 2022.
Biden, who has strongly denounced Trump's similar allegations, has declined to elaborate on his own allegations, citing "an ongoing (law enforcement) investigation." On the 12th, the investigation began in earnest under the direction of the special prosecutor, but the Republican Party insisted, "There is a gap in dealing with Mr. Trump." A special subcommittee on the "weaponization of the federal government" will be set up in the House Judiciary Committee to investigate the attitude of the judicial authorities to the investigation.
In the House of Representatives, the Republican Party discussed tax fraud and collusion with foreign companies by Mr. Biden's second son, Hunter (Committee on Oversight and Government Reform). Investigations were also launched into the confusion surrounding the withdrawal of U.S. forces from Afghanistan (the Oversight and Government Reform Committee, the Foreign Relations Committee, etc.) and the confusion surrounding border control (the Homeland Security Committee, etc.). Biden administration officials will be pursued at public hearings, and depending on the progress of the investigation, impeachment proceedings will be considered.
Since the Biden administration took office, Democrats have taken the lead in the House of Representatives, and a special committee investigating the January 2021 attack on Congress has pursued issues surrounding Mr. Trump. He held intensive public hearings ahead of the November 2022 midterm elections, criticized Trump, and used it as a "political show" to give the Democrats an advantage in the election. Looking ahead to the 2024 presidential election, the Republican Party hopes to use its majority position in the House of Representatives to shake the administration.
Japan-Canada Summit Meeting Confirms Cooperation in Dealing with China Strengthening Relationships in LNG Development
Prime Minister Fumio Kishida met with Prime Minister Justin Trudeau for about 75 minutes on the 12th (early morning on the 13th Japan time) in Ottawa, Canada, where he was visiting. They confirmed their policy of working closely together to deal with China, which is intensifying its hegemonic movements. They agreed to strengthen cooperation in the fields of energy and economic security, including the development of liquefied natural gas (LNG) in western Canada.
At a meeting with Trudeau, Prime Minister Kishida explained the policy of strengthening defense capabilities, including the possession of counterattack capability (the ability to attack enemy bases). He welcomed Canada's announcement of its "Indo-Pacific Strategy" and called for cooperation to realize a free and open Indo-Pacific. Trudeau expressed his "total support" for Japan's efforts to strengthen its defense capabilities. He strongly opposed attempts to unilaterally change the status quo by force in the East China and the South China Sea, and agreed to work closely together to "respond to various issues surrounding China."
The two leaders confirmed that the Group of Seven (G7) countries will continue to unite and impose sanctions on Russia over Russia's aggression against Ukraine. They shared the recognition that North Korea's ballistic missile launches are absolutely unacceptable, and agreed to cooperate toward the success of the G7 Summit in Hiroshima in May.
At a joint press conference after the meeting, Prime Minister Kishida said, "China is a central issue for both Japan and Canada," and Trudeau said, "We must cooperate and compete with China."
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