_{ECONOMIC NEWS}

Powell Warns: 'U.S. Fiscal Trajectory Is Unsustainable'

In a "60 Minutes" interview, Federal Reserve Chair Jerome Powell described the U.S. fiscal situation as unsustainable, highlighting the national debt's growth outpacing the economy. Despite recent economic growth and decreasing inflation, the U.S. debt exceeded $34 trillion, raising concerns. Congress has delayed budget decisions amid debates over government funding and the debt. Last spring, President Biden and House Republicans narrowly avoided a default, but the national debt's weight led Fitch Ratings to downgrade the U.S. credit rating.

Despite these fiscal challenges, Powell noted the economy's strong performance, with a significant GDP growth rate and reduced inflation. However, the Federal Reserve has maintained high interest rates, with signals of potential rate reductions in 2024, though Powell suggested a rate cut in March is unlikely. He emphasized that rate decisions would be influenced by labor market conditions and inflation trends, dismissing any notion that political motives would sway the Federal Reserve's actions. Powell's stance has faced criticism from both political spectrums, with former President Trump suggesting political bias in rate decisions and some Senate Democrats urging rate cuts to alleviate housing market pressures. Powell firmly stated that the Federal Reserve's decisions are apolitical, valuing integrity above all. Read More.

_{FINANCIAL FOCUS}

Russia Prioritizes Abandoning US Dollar in 2024 Strategy

Russia has declared making the move away from the US Dollar as the top priority for the BRICS alliance in 2024, coinciding with its assumption of the group's chairmanship. This stance was emphasized at a recent meeting of BRICS Sherpas and Sous Sherpas, which also marked the first participation of the five newly added countries: Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia. Over the past year, BRICS has seen significant growth and has actively pursued de-dollarization, aiming to diminish the global dominance of the US dollar and promote the use of local currencies in international transactions. Read Now.