economic

April 6 (UPI) — Two Democratic lawmakers concluded a trip to Cuba on Monday by calling for the United States and Cuba to begin “real negotiations” and denouncing the Trump administration’s “economic bombing” of Havana.

Democratic Reps. Pramila Jayapal, of Washington, and Jonathan Jackson, of Illinois, returned to the United States following a five-day visit to Cuba. They said they spoke with officials and witnessed the effects of President Donald Trump‘s monthslong de facto oil blockade of the island nation.

The lawmakers said they saw premature babies in incubators put at risk due to Cuba’s energy crisis, children out of school because teachers have no fuel to travel to school and cancer patients being denied treatment because of a lack of medicine.

“This is cruel collective punishment — effectively an economic bombing of the infrastructure of the country — that has produced permanent damage,” the lawmakers said in a joint statement.

“It must stop immediately.”

The Trump administration has been enforcing a monthslong policy of choking off oil supplies to Cuba, plunging the socialist nation into a worsening energy and humanitarian crisis. On Jan. 29, President Donald Trump declared a national emergency with respect to Cuba and created a process to penalize countries that provide it with oil. According to a recent U.N. system action plan, citing Cuban authorities, no fuel imports have been recorded since Dec. 13.

“This disruption has triggered a severe energy shock, characterized by a critical fuel shortage affecting electricity generation, transportation and essential logistics across the country,” the U.N. report published last week said.

Widespread blackouts, fuel rationing and electricity shortages have been reported, it said.

The two Democratic lawmakers said they met with Cuba leaders in religion, civi society and the government, as well as dissidents, and all agreed that the blockade — which they called illegal — must end.

“We do not believe that the majority of Americans would want this kind of cruelty and inhumanity to continue in our name,” they said.

The pair met with President Miguel Diaz-Canel Bermudez, who said in a statement that he denounced to them the “energy siege decreed by the current U.S. government” and reiterated “the willingness of our Government to sustain a serious and responsible dialogue and to find solutions to the existing differences.”

Foreign Minister Bruno Rodriguez of Cuba said in a statement that he also told the lawmakers about the situation facing his country and their “willingness for serious and responsible dialogue to try to find solutions to bilateral problems.”

The Democrats said the Cuba government has sent signals that the country is ready for reform, pointing to its pardoning last week of more than 2,000 prisoners and efforts to liberalize its economy, while arguing the remaining obstacles to its progress is U.S. policy, which they called “outdated” from the Cold War-era.

“True reform will only come from charting a new course,” they said.

Trump has turned his attention to Cuba after detaining Venezuela’s authoritarian leader, Nicolas Maduro, in early January in a clandestine military operation.

He has said it is “a failing nation” and described it as on the precipice of collapse.

“As we achieve a historic transformation in Venezuela, we’re also looking forward to the great change that will soon be coming to Cuba,” he said on March 7 during the Shield of the Americas Summit.

“Cuba’s at the end of the line.”

HAVANA — Two U.S lawmakers called for a permanent solution to Cuba’s crises after witnessing the effects of a U.S. energy blockade during an official visit to the island.

Democratic Reps. Pramila Jayapal of Washington and Jonathan Jackson of Illinois met with Cuban President Miguel Díaz-Canel, Foreign Minister Bruno Rodríguez and members of Parliament during a five-day trip that ended Sunday.

Díaz-Canel wrote on X Monday that upon meeting with Jayapal and Jackson, he “denounced the criminal damage caused by the #blockade, particularly the consequences of the energy embargo imposed by the current US administration and its threats of even more aggressive actions.”

Díaz-Canel added: “I reiterated our government’s willingness to engage in serious and responsible bilateral dialogue and find solutions to our existing differences.”

Both the U.S. and Cuba have acknowledged recently that talks are ongoing at the highest level, but no details have been disclosed.

Jayapal told reporters she believes that recent steps taken by Cuba, such as opening the economy to certain investments by Cuban Americans living abroad; the recent announcement that more than 2,000 prisoners would be pardoned; and the arrival of an FBI team to collaborate in the investigation of a fatal shooting involving a U.S.-flagged boat, “indicate that the moment is here for us to have a real negotiation between the two countries and to reverse the failed U.S. policy of decades, a Cold War remnant that no longer serves the American people or the Cuban people.”

Cuba’s government has released the pardoned prisoners who were accused of a variety of crimes, although none so far appear to be political prisoners.

In late January, President Trump threatened to impose tariffs on any country that would sell or provide oil to Cuba, although he made an exception for a Russian ship that reached the island last week with 730,000 barrels of crude oil. It was the first petroleum shipment in three months to dock in Cuba, which produces only 40% of the oil it needs.

“This is cruel collective punishment — effectively an economic bombing of the infrastructure of the country — that has produced permanent damage. It must stop immediately,” Jayapal and Jackson said in a statement released Sunday.

Critical oil shipments from Venezuela were halted after the U.S. attacked the South American country in early January and arrested its leader, Nicolas Maduro.

Cubans already suffering from five years of economic crisis have acutely felt the impact of the fuel shortage: national blackouts, gasoline shortages and rationing, lack of public transport, cuts in working hours, paralyzed hospitals and surgeries, and suspension of flights, among other things.

Russia has promised a second delivery of petroleum, although it’s not clear when it might arrive. Experts have said that the first shipment could produce about 180,000 barrels of diesel, enough to feed Cuba’s daily demand for nine or 10 days.

Jayapal said that while such shipments are critical, they are only temporary solutions: “We need a longer, permanent solution for the Cuban people and the American people.”

Meanwhile, Jackson compared the blocking of the Strait of Hormuz off Iran’s coast to the oil blockade in Cuba, adding that the island “is the most sanctioned part of Earth.”

“Our government is fighting to keep the Strait of Hormuz open so there is a free flow of oil around the world. We want, for humanitarian reasons, a free flow of oil, fuel, and energy in our own hemisphere,” he said.

Jackson and Jayapal said they would prepare a report and continue to work on initiatives proposed by fellow members of the U.S. House of Representatives to lift sanctions against Cuba to alleviate the ongoing humanitarian crisis.

Mesquita and Rodríguez write for the Associated Press.

March 31 (Asia Today) — South Korea’s ruling and opposition parties agreed Tuesday to pass a package of economic measures, including a currency stabilization bill, as the won weakened sharply amid prolonged conflict in the Middle East.

The legislation was approved during a plenary session alongside more than 60 bills aimed at stabilizing the economy and supporting livelihoods.

The currency measure includes tax incentives designed to encourage domestic investment by individuals who have invested in overseas markets, often referred to in South Korea as retail investors in foreign stocks. Officials said the goal is to increase demand for the Korean won and reduce volatility in foreign exchange markets.

The won traded at 1,530.1 per U.S. dollar on Tuesday, well above the psychologically significant 1,500 level, adding to inflationary pressure.

Floor leader Han Byung-do said the worsening Middle East crisis had begun to affect everyday life, emphasizing the need to contain exchange rate volatility and shield the economy from external shocks.

Lawmakers also approved additional economic legislation tied to the crisis. These include a measure to support corporate restructuring, allowing companies to streamline mergers and spin-offs and receive tax benefits as they respond to industrial challenges and shift into new sectors.

Other bills passed include revisions to trade-related laws aimed at helping businesses adapt to changes in the global trade environment.

Separately, lawmakers voted to fill several vacant leadership posts in National Assembly committees. The Democratic Party nominated Rep. Seo Young-kyo as chair of the Legislation and Judiciary Committee, along with Rep. Kwon Chil-seung and Rep. So Byung-hoon for other committee leadership roles. Their terms will run through May.

The votes were conducted by secret ballot and passed with support from the Democratic Party, while the People Power Party is believed to have opposed the selections.

The People Power Party had argued that the judiciary committee chair should be held by the opposition to ensure checks and balances, noting that the Democratic Party already holds the position of National Assembly speaker.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260401010009707

March 23 (Asia Today) — People Power Party leader Jang Dong-hyuk on Sunday criticized a parliamentary probe plan led by the ruling party, along with the government’s real estate policy and its response to the Iran crisis.

Speaking at a party leadership meeting at the National Assembly, Jang questioned the need for an investigation into alleged prosecutorial misconduct during the previous administration.

“If a fabricated indictment can be proven through a parliamentary probe, it would be much faster to obtain an acquittal in court,” he said. “The investigation will ultimately only confirm that the prosecution and trial were justified.”

Jang also invoked remarks previously made by President Lee Jae-myung, saying, “If a president commits a crime, he should go to prison,” adding that he was “returning those words as they are.”

The conservative party boycotted the National Assembly plenary session a day earlier and held a protest rally outside the chamber. A brief confrontation occurred with ruling party lawmakers after the probe plan passed.

Jang criticized the government’s real estate policy, accusing the president of centralizing decision-making while excluding public officials from the process.

“By that logic, the president, who is facing multiple trials, should step away from judicial policy,” he said.

He also warned against expanding fiscal spending in response to the Iran crisis, citing concerns over inflation, exchange rates and rising oil prices.

“With a triple shock of high exchange rates, inflation and oil prices, releasing an additional 25 trillion won, about $18.7 billion, would push prices and the currency higher,” he said. “This is not the time for cash handouts but for stabilizing the economy.”

Floor leader Song Eon-seok echoed the criticism, accusing the administration of attempting to consolidate power and warning against what he described as excessive control over parliamentary committees.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260323010006783

The United States Federal Reserve will hold interest rates steady as the labour market cools and prices on goods and services surge following the US and Israel’s joint strikes on Iran.

The central bank will maintain its benchmark rate at 3.5–3.75 percent, consistent with the Fed’s decision last month, when it also held rates steady.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the US economy are uncertain,” the central bank said in a statement announcing its policy decision and referring to its Federal Open Market Committee.

“The Committee is attentive to the risks to both sides of its dual mandate.”

Holding rates steady was in line with estimates. CME FedWatch, a tool that tracks monetary policy decisions, forecast that there was a 99 percent chance that rates would hold steady.

The stall comes after three rate cuts in 2025.

Global gripes

Consumers are also facing the repercussions of US President Donald Trump’s trade and military policies in their daily expenses.

“Despite meaningful progress on inflation in 2024, Trump’s tariffs have stalled progress and kept inflation persistently above the Fed’s target. Wholesale prices are running hot as service prices surge, and now, Trump’s war in Iran is rocking commodity markets around the globe,” Elizabeth Pancotti, managing director of policy and advocacy at Groundwork Collaborative, an economic think tank, said in comments provided to Al Jazeera.

Last month, the US Supreme Court ruled against the president for his use of the International Emergency Economic Powers Act (IEEPA). The high court said the president exceeded his authority and that the tariffs imposed under that order must be refunded. However, the president then imposed new tariffs not covered by IEEPA.

The White House announced a 15 percent tariff through Section 122, which allows the president to impose tariffs for 150 days. Those changes were reflected in the producer price index report released by the US Department of Labor’s Bureau of Labor Statistics on Wednesday.

Wholesale prices rose by 0.7 percent for the month, marking the biggest one-month surge in a year. Goods prices rose 1.1 percent overall after tumbling for two months. Energy prices rose by 2.3 percent, with the cost of gas or petrol rising by 1.8 percent. Those costs are expected to get higher as tensions rise in the Strait of Hormuz following joint US-Israel strikes on Iran in late February and the subsequent retaliation.

“In the near term, higher energy prices will push up overall inflation; however, it is too soon to know the scope and duration of the potential effects on the economy,” Fed Chair Jerome Powell told reporters.

In the last month, petrol prices have jumped for US consumers. The average price for a gallon of regular gasoline is $3.84, up from $2.92 this time last month.

“The Fed’s inflation worries extend beyond weathering a fleeting wave of one-off price hikes associated with tariffs and, more recently, an energy price spike,” Stephen Stanley, chief US economist at Santander US Capital Markets, told the Reuters news agency.

Labour market stalls

Holding rates steady also comes as the job market stagnates. The latest jobs report, which was released earlier this month, showed that the US economy lost 92,000 jobs, with unemployment rising to 4.4 percent.

Meanwhile, the Job Openings and Labor Turnover Survey, or JOLTS report, which came out last week, showed 6.9 million open jobs in the US, unchanged from the month prior. That shows that employer hiring has stalled and that those who have jobs are seldom leaving for new ones.

“This might be one of the toughest moments in recent memory for the Federal Reserve’s Open Market Committee,” Michael Linden, Senior Policy Fellow at the Washington Center for Equitable Growth, said in remarks provided to Al Jazeera. “Recent data has revealed that economic growth in the back half of last year was extremely weak, the labour market seems to be on the precipice of disaster, and prices keep rising faster than anyone feels comfortable with.”

Political undercurrents

Wednesday’s decision is the second-to-last one of current Fed Chair Powell, whose term is up in May. Powell, who was first appointed by Trump during his first administration, has been a target of Trump’s scorn and criticisms for not cutting interest rates fast enough.

“When is ‘Too Late’ Powell lowering INTEREST RATES?” Trump posted on his social media platform Truth Social on Wednesday morning ahead of the decision.

Previously, Trump said he would not nominate someone to lead the central bank unless the nominee agreed with his position.

“Anybody that disagrees with me will never be the Fed Chairman!” Trump said in a post on Truth Social in December.

“We at the Fed will continue to do our jobs with objectivity, integrity and deep commitment to serve the American people,” Powell told reporters.

Trump’s nominee to succeed Powell, Kevin Warsh, has his nomination in flux as Republican Senator Thom Tillis said he would not vote to advance any of Trump’s nominees to the central bank until a criminal probe into the current chairman, Powell, is closed.

Tillis sits on the Senate Banking Committee, which vets nominees for the central bank, including Warsh. He said he will not approve Trump’s Fed nominees until the probe of Powell is closed. The criminal probe of Powell centres on Fed building renovations after a judge quashed grand jury subpoenas and called the investigation a pretext to pressure the central bank to lower interest rates.

If Warsh has not been confirmed by the Senate in time for the Fed’s June 16–17 meeting, Powell would continue to lead the rate-setting Federal Open Market Committee.

“If my successor is not confirmed by the end of my term as chair, I would serve as chair pro tem until he is confirmed. That is what the law calls for,” Powell said.

“On the question of whether I will leave while the investigation is ongoing, I have no intention of leaving the board until the investigation is well and truly over with transparency and finality.”