Category World News

In response to signs of a slowing labor market and persistent pressure on consumer prices, the US Federal Reserve cut its benchmark interest rate by 25 basis points to 3.75-4.0%.

The US central bank’s second rate cut this year was announced on Wednesday.

More recent indicators show that job growth has decreased this year and that the unemployment rate has increased but hasn’t increased through August. The Fed stated in a statement that inflation has increased since the beginning of the year and that it is still somewhat elevated.

“The outlook for the economy is still uncertain.”

The expectations were met in large part by the cuts. There was a 97.8% chance of rate cuts, according to CME FedWatch, which monitors the likelihood of rate cuts, earlier on Wednesday.

After the September cut, economists had anticipated two more rate cuts for the remainder of the year. Following Wednesday’s cut, Goldman Sachs, Citigroup, HSBC, and Morgan Stanley, among others, forecast a further 25-basis-point reduction by the year’s end. The only major corporation is Bank of America Global Research, which does not anticipate another 25-basis-point reduction in 2025.

“The Fed has to choose between lowering interest rates to support growth and labor markets and increasing them to tamp down inflation. They are currently adopting a cautious strategy with a focus on growth concerns, according to Michael Klein, a professor of international economic affairs at Tufts University in Massachusetts.

Jerome Powell, head of the Federal Reserve, said a rate cut is not always going to happen.

In a press conference during the Fed’s upcoming rate decision meeting, Powell said, “We haven’t made a decision about December.”

“We are still in a good position to take advantage of any potential economic developments.”

implications of the government shutdown

The government shutdown, which is currently in its 29th day as of Wednesday, is the second-longest in US history, trailing only by the 35-day shutdown during Donald Trump’s first two terms of office, which began in late 2018 and early 2019.

The Department of Labor was unable to release the September jobs report due to the shutdown’s delay in October 3. The Consumer Price Index (CPI), a crucial indicator of inflation and tracking the cost of goods and services, was the only significant government economic data released this month. In September, the CPI increased by 0.3% on a month-over-month basis to a 3 percent inflation rate.

Because the Social Security Administration required the release of that information, 2026 cost-of-living adjustments were required. Social Security recipients will therefore receive a 2.8% increase in payments in 2025 as a result.

The Labor Department is currently unable to compile the data needed for its November reports, so the shutdown could have a bigger impact on the central bank’s decision next month.

Private trackers are displaying a slowdown, though the government’s data is limited.

We won’t be able to get a detailed sense of the situation, but I believe we would pick up if the economy changed in some way or another, according to Powell.

Consumer confidence suffers.

According to the Conference Board’s report released on Tuesday, consumer confidence hit a six-month low.

As a result of worries about job scarcity, lower-income earners, those earning less than $75, 000 annually, are less optimistic about the state of the economy. This comes just days after numerous large corporations announced layoffs in droves.

On Wednesday, Paramount eliminated 2, 000 employees. 14 000 corporate jobs were cut by Amazon on Tuesday. Target, a big box store, cut 1,800 jobs last week. Government employees are weighed down by furloughs and layoffs as a result. The US government employs the most people in the country.

The Conference Board notes that those who earn more than $200, 000 annually are still reasonably confident and are leading consumer spending that keeps the economy afloat.

Tariffs, which weigh on both consumers and businesses, are largely a result of pressures on the labor market and consumer spending.

“Frustrating and disappointing for us.” The ceasefire violation in Gaza was yesterday, according to Qatar’s prime minister, and mediators are focusing on the next step in the agreement, including Hamas’ disarmament. He addressed the New York Council on Foreign Relations.

After negotiations and ceremonies, including the presentation of a gold medal and crown to US President Donald Trump, the two countries have begun trade talks. Details of the $350 billion plan to invest in the US economy are being discussed.

Lee Jae Myung, the country’s president, dialed up the flattery during Trump’s final stop in Asia, where he worked to nail down financial promises while the two countries exchanged gifts.

No agreement has been reached despite the fact that both parties claimed that things have progressed and that Trump claimed things are “pretty much finished.” According to Kim Yong-beom, Lee’s chief of staff for policy, the plan includes gradual investments, cooperation in shipbuilding, and a reduction in Trump’s tariffs on South Korea’s auto exports. A comment request was not immediately addressed by the White House.

Kim claimed that the two nations have agreed to continue to have reciprocal tariffs at 15 percent as they have been since August, and that the same rate will also be applied to the US-exported largest auto parts, cars and auto parts. Automobile parts and parts had been subject to a 25% tariff, putting Japanese and European competitors, such as Hyundai and Kia, at odds with them.

After a day of applause for the visiting US president from his hosts, it appeared progress had been made on these issues despite the lack of immediate confirmation from US officials on those matters.

A special lunch menu was served with US-raised beef and a gold-adorned brownie. When Trump exited Air Force One, a band played the “YMCA” campaign anthem. You are indeed making America great again, Lee told him.

Trump has a soft spot for pomp and circumstance, despite being eccentric and demanding. As he walked along the red carpet, he was particularly impressed by the choreographed display of colorful flags.

During their meeting, Trump described it as “some spectacle, and some beautiful scenes.” “It was done flawlessly, and it was flawless.”

Trump even softerened his remarks earlier this day about international trade, which he typically uses to describe as predatory, in which the US is constantly trying to defraud.

During a business forum, he said, “The best deals are the deals that work for everyone.”

South Korea’s potential dangers

Trump was in Gyeongju, a historic city where South Korea hosts its annual Asia-Pacific Economic Cooperation (APEC) summit. Prior to that, he made stops in Malaysia and Japan, where he met the new prime minister, and where he met at the Association of Southeast Asian Nations summit.

The Republican president has been working to close trade deals along the way, hoping that Americans who are uneasy about the job market and witnessing a five-week government shutdown will benefit from his confrontational approach to tariffs.

South Korea has been particularly difficult to crack due to Trump’s demand for US$350 billion in direct investment.

Korean officials prefer to offer loans and loan guarantees over raising money, which they fear could destabilize their own economy. To control the flow of its currency into the US, the nation would also require a swap line.

After meeting with Lee, Trump stated that the deal was “quite close.” He refused to provide any details.

The negotiations are “a little bit more slowly” than expected, according to Oh Hyunjoo, a deputy national security director for South Korea, earlier this week.

She said on Monday, “We haven’t been able to reach an agreement on issues like the structure of investments, their formats, and how the profits will be distributed.”

In contrast, Trump’s experience in Japan has been characterized by the government’s efforts to deliver the $550 billion in investments it promised as a result of a previous trade agreement. During a dinner with business leaders in Tokyo, US Commerce Secretary Howard Lutnick made the announcement of up to $ 490 billion in specific commitments.

Before Trump arrived, Lee warned against trade barriers at the business forum.

Words like “cooperation,” “coexistence,” and “inclusive growth” may sound hollow, he said, “at a time when nationalism and protectionism are on the rise and nations focus on their immediate survival.” Despite the fact that “in times of crisis like this, APEC’s role as a platform for solidarity shines brighter.”

gift shower

When Lee praised the renovations to the Oval Office and suggested constructing a Trump Tower in North Korea, he met with Trump&nbsp in June and had a friendly meeting with him at the White House in August.

When Trump visited on Wednesday, he behaved similarly. Trump is the first US president to receive the Grand Order of Mugunghwa, the country’s highest honor, with the gold medal.

Trump remarked, “I want to wear it right now, but it’s as beautiful as it can be.”

The Silla Kingdom, which ruled from 57 BC to 935 AD, was followed by a replica of the royal crown. In Gyeongju, the capital of the kingdom, a tomb was where the original crown was discovered.

In addition to the trade disputes, Washington and Seoul have also been at odds with each other this year. In the month of September, a US immigration raid on a Hyundai plant in the US state of Georgia resulted in the detention of more than 300 South Koreans, which sparked outrage and betrayal.

According to Lee, businesses would probably not make investments in the future unless the visa system was improved.

Establishing a local factory in the United States will either result in severe disadvantages or be very challenging for our businesses, he said.

Trump responded to the immigration raid on Monday by saying, “I was against getting them out,” and that a more efficient visa system would make it easier for businesses to employ skilled workers.

Trump is scheduled to meet with Chinese President Xi Jinping on Thursday in South Korea for a closely watched meeting. Although Washington and Beijing have fought over trade, both sides have indicated they are willing to lower tensions.

Trump stated to reporters on Air Force One on Wednesday that he anticipates lowering tariffs that would affect China’s flow of ingredients.

Since the paramilitary Rapid Support Forces (RSF) seize control of the western Sudanese city of el-Fasher, the state capital, it is feared that thousands of people have been murdered.

El-Fasher fell on Sunday after an 18-month RSF siege that halted access to food and supplies for the tens of thousands of trapped insiders for hours.

According to the UN, Sudan has been the site of an unrest for the past two and a half years, which has resulted in an estimated 40 000 deaths and the displacement of 12 million people.

What are our current knowledge’s regarding the alleged massacres in El-Fasher?

What transpired during El-Fasher?

El-Fasher was taken over by the RSF on Sunday, taking the SAF’s final remaining positions in the Darfur region. By Wednesday, reportedly, 2, 000 people had already been killed.

As a result of the RSF’s 56 kilometers (35 miles) of barriers, which blocked access to food and medicine and blocked escape routes, around 1.2 million people in the city had been under siege for 18 months and had been forced to eat animal feed.

RSF fighters were seen torturing and executing people in videos that were shared online and verified by Al Jazeera’s Sanad Verification team. In the past, RSF members have frequently spoken about themselves abusing others.

Sudanese medical and human rights organizations claimed that the RSF was abusing hospitals, detaining people, and carrying out mass murders.

According to the UN Human Rights Office, the RSF’s actions included “indications of ethnic motivations for killings,” including summary executions of people fleeing.

Using satellite imagery and remote sensing data, a Yale Humanitarian Research Lab (HRL) analysis appeared to confirm reports of widespread murders.

Human body clusters and bloody pools are signs of human existence, according to HRL. Before the RSF invaded, the report noted that the clusters and discoloration weren’t present in the images.

More than 26 000 people have fled El-Fasher in just two days, most of them on foot, heading toward Tawila, which is 43 kilometers west, according to the UN. The International Organization for Migration estimates that 177 000 civilians are still ensconced in El-Fasher.

Meanwhile, atrocities have been reported in Bara, in the RSF’s neighboring North Kordofan state, where it has reportedly attacked civilians and humanitarian workers since it announced it had taken control of the state on October 25.

Five Sudanese volunteers with the organization were killed in Bara, according to the International Federation of Red Cross and Red Crescent Societies, and three more are still missing.

The RSF is moving quickly to take control of the strategic city of El-Obeid, which is located just outside Bara.

El-Fasher and El-Obeid are important, but where are they?

Both significant cities in western Sudan have turned into important battlegrounds.

The SAF is attempting to occupy RSF territory from its strongholds in the east, but the RSF is already deeply rooted in the west and wants to completely rule the area.

El-Fasher, the capital of North Darfur, was the last major city to remain unaffected by the RSF, up until Sunday. With its seizure this week, the nation is now effectively split between an RSF-controlled west and an east-dominated SAF.

The Sudanese army is stationed in eastern, central, and northern strongholds while the RSF has established a parallel government throughout Darfur.

El-Obeid, which borders Darfur and the Kordofan region and serves as a strategic link between Darfur and Khartoum, is the oil-rich capital of North Kordofan state.

According to analysts, SAF currently controls El-Obeid, but the RSF is attempting to close in, which would mean sacrificing SAF’s crucial buffer between its Khartoum base and RSF territory.

The RSF announced on October 25 that it had retaken Bara, which SAF had only recently taken from it in September, for 59 kilometers (37 miles). &nbsp,

According to Mercy Corps, the RSF had launched attacks on El-Obeid from Bara in an effort to subdue it, and it is now moving closer to El-Obeid, where at least 137, 000 people were already sheltering.

What have the parties’ statements regarding the el-Fasher’s seizure been?

General Abdel Fattah al-Burhan, the SAF’s commander and de facto leader, announced on Monday that his troops had withdrawn from El-Fasher to spare the populace “the systemic destruction and the systematic killing of civilians” by the RSF.

However, he continued, “We are determined to avenge what occurred to our people in El-Fasher.”

Foreign Minister Hussein Al-Amin blasted the international community on Wednesday for failing to intervene against the RSF.

According to Mohammed Hamdan “Hemedti” Dagalo, the RSF’s leader, said on Wednesday that any individuals found guilty of crimes against civilians would be held accountable.

The RSF are who?

The paramilitary group’s original name was “Janjaweed,” nomadic tribal armed groups that had fought for Omar al-Bashir’s long-serving government during the 2003 Darfur war, and later gained acclaim for their impunity.

Some rights groups labeled the Janjaweed’s killings and displacement of 2.5 million people as genocide against the rebelling sedentary tribes.

Al-Bashir designated the Janjaweed as the RSF, which had roughly 100 000 members in 2013. Then, a law passed in 2017 strengthened its position as an independent security force.

During the 2019 popular uprising, the RSF helped to overthrow al-Bashir. Then, in order to end the civilian-military transition government, it joined forces with SAF in 2021 to overthrow civilian prime minister Abdalla Hamdok.

What caused the conflict in Sudan to begin?

However, Hemedti and al-Burhan became tense over when the SAF and the RSF would merge, and which organization would take the lead, leading to the outbreak of war on April 15, 2023.

The main issue is who will take the national leadership, with SAF requesting that the RSF fully enlist in its ranks and organizational structure.

Both sides have been accused of carrying out atrocities in the conflict by human rights groups.

The US Department of State announced in January that Darfur was the site of a genocide committed by the RSF and its allies.

What is in question?

Most importantly, there are thousands of lives.

Sudanese rights organizations have warned that civilians, particularly those from “non-Arab” tribes, would be seriously impacted if an RSF took control of El-Fasher.

According to Hiba Morgan of Al Jazeera, people who fled El-Fasher reported hearing about the RSF executing people based on ethnicity.

Nearly 500 people have reportedly died in the Saudi Hospital, where patients, health workers, and fugitives were sheltering.

There are numerous reports of sexual violence against women, and the RSF has reportedly detained hundreds of others.

Any location the RSF seizes is likely to experience more massacres, according to analysts.

El-Fasher’s seizure gives the RSF complete control over the entire Darfur region, which is strategically located along Sudan’s borders along with Libya and South Sudan.

The conflict was partially driven by fighting for Sudan’s gold, according to an Italian Institute for International Political Studies (ISPI) report from 2024.

What steps have been taken to put an end to the conflict?

There haven’t been significant positive outcomes from the various peace talks that Saudi Arabia, the United States, and the African Union have initiated.

More recently, the US charted a strategy that Saudi Arabia, Egypt, and the UAE called the “Quad” and called for the end of the fighting.

Their plan for a three-month humanitarian truce would allow aid to enter, which would eventually lead to a permanent ceasefire. Additionally, it demanded a nine-month transition to civilian rule.

Al-Burhan initially rebuffed this agreement, pleading for the RSF to disband. However, he showed an openness to it when he first met Egyptian President Abdel-Fattah el-Sisi on October 15.

Indirect negotiations between SAF and RSF were reported last week in Washington, DC, with the end of October meeting as a target for further discussions.