Three members of the Board of Governors of the Federal Reserve voted in favor of raising the reference rate at the last meeting, due to alleged fears of an increase in inflation and assuming that the war against the Iranian regime could continue until after the legislative elections on November 3 in the United States.
The White House is betting on the final surrender of the ayatollah regime under a naval, financial and now air blockade to Tehran, where the civil government – which wants negotiations – is not really in control of the country, but rather the ayatollahs and their armed wing: the so-called Iranian Revolutionary Guard, which rejects any agreement with the US.
On Tuesday, September 8, the United States imposed sanctions on “all Iranian airlines” that were not yet subject to these types of measures.
The Treasury Department reported that the measure targets “36 targets for supporting Iran’s aviation sector, which the regime uses to transport weapons, personnel and illicit cargo.”
Among them are 27 Iranian airlines and companies based in countries such as the United Arab Emirates, Türkiye, Malaysia and Kazakhstan.
American oil
Although the conflict in the Middle East has generated the destabilization of crude oil prices, the economic impact in the United States has not been as predicted by the White House’s adversaries.
The war in the Middle East has benefited the increase in US crude oil exports to record levels to Europe and Asia, after the ups and downs that arose in the Strait of Hormuz, through which a fifth of the hydrocarbon trade transited.
In certain periods of the conflict, Iranian terrorists have blocked the passage of ships in the sea lane and attacked them.
Currently, according to US Secretary of Energy, Chris Weight, and Vice President JD Vance, some 9 million barrels of hydrocarbons cross the international free trade sea route daily, which Tehran intends to seize as a source of income and control.
In addition to the naval blockade imposed by the US Navy, the Treasury imposed sanctions and restrictions on banks in the Middle East, especially in the United Arab Emirates, which were responsible for laundering the money of the Iranian military in its oil smuggling operations on the black market, in addition to carrying out financial transactions to support the regime.
With their actions in Hormuz, now stopped with the US attacks on strategic points of the Revolutionary Guard and areas close to maritime access, the Islamic radicals intended to create a global inflationary crisis to force Washington’s withdrawal, something that has not happened and will not happen.
“We must be certain that core inflation is moving toward our objective, clearly and at sufficient speed. Otherwise, we have work to do,” said Federal Reserve Chairman Kevin Warsh in his first speech at the central bankers’ meeting in Jackson Hole, in the western United States.
In August, core inflation – which excludes energy and food prices – stood at 2.4%
The head of the Fed considered that the current inflation in the United States does not require restrictive actions in monetary policy.
In his economic outlook, Warsh highlighted very positive aspects.
“I am impressed by the overall performance of the economy, which has strengthened,” he said, citing indicators such as corporate capital spending, foreign investment, the expansion of American manufacturing, corporate profits and consumer spending.
Biden’s burden
The US Central Bank has failed to meet its long-term inflation target of 2% for more than five years, after the record inflation caused by Joe Biden’s government with its failed economic policies.
The (official) inflation levels that reached 9.1% generated by the previous administration were the worst in the last five decades. Analysts and independent institutions place the records between 11% and 13%.
Unemployment remained stable in August in the United States at 4.1%. The data demonstrates the strength of the US labor market.
The rapid reduction in Treasury bond yields due to urgent measures by the Secretary, Scott Bessent, increased the confidence of investors in unstable markets due to the situation in the Middle East, which is gradually heading towards an outcome contrary to what the Iranian extremists predicted through their controlled press channels and anti-US analysts.
In any case, a necessary extension of the conflict would not cause major changes either.
In total, the US economy generated 162,000 jobs in August, triple than the markets expected.
Investors anticipated about 50,000 new jobs that month, according to the consensus published by MarketWatch.
The job creation figures for the months of June and July were also revised upwards, the Department of Labor reported.
The new data is very positive for the Republican Party and President Trump, who faces in two months the electoral test of his management against the Democratic campaign with its Woke agenda, which has plunged – in addition to multiple corruption scandals – that Party into the worst reputation and crisis in its history.
The lie
The financial markets, on the other hand, received the report with restraint. They know that if employment is stable and full, the US Federal Reserve (Fed) will focus on inflation and could lower interest rates, something that immediately benefits the economy and especially consumers.
For its part, the prospect of a rise in interest rates implies the possibility of credit becoming more expensive, which, being more expensive, discourages consumption and investment, and reduces pressure on prices.
While it is true that prices have risen, it is also true that the rise has been minimal when taking into account the drastic change in US trade policy through tariffs and other measures, which were added at the end of February to the beginning of the war against the Iranian regime and the instability in traffic through the Strait of Hormuz.
In various articles published in DIARIO LAS ÁMERICAS, the causes that generated the worst inflation in the last five decades were exposed during Joe Biden’s government. However, the political and economic memory promoted by liberal media and democratic activists has an effect among consumers with short memories or victims of media manipulation.
The Biden-Obama administration sent prices soaring above 9% in the worst rise in the last 50 years. However, independent experts place the figure between 11% and 13%.
About two years before the election, the Biden administration and then-Federal Reserve Chairman Jerome Powell began announcing plummeting inflation, whose prices no one saw falling; On the contrary, in many cases they continued to increase.
The reality, which many have already forgotten, is that the official data went one way and reality went the other. Prices remained at the same level, especially for basic necessities, car sales, insurance, food, appliances and medicines.
This crisis, as is typical for democrats immersed in a socialist agenda that blames others for their catastrophes, is blamed on the war in Iran and tariffs, in an attempt to distort the state of opinion before the legislative elections on November 3.
Historic oil agreement
Three Fed officials signaled they would be willing to raise interest rates if August data did not show a continued downward trend in inflation. Today the concern of these three governors is about 3% inflation, while during the previous administration they waited for it to reach 8% to show any interest in economic statistics under the left’s mandate.
“Lower interest rates because the United States is a much stronger debtor than it was very recently!” President Trump once again demanded on his Truth Social platform, who believes that high rates are maintained unnecessarily and slowly in the face of important changes in the US economy that generate an automatic correction of inflation.
What is expected from 2027 and 2028 is a strong recovery in the labor market, when the large investments achieved by the White House through agreements begin to bear fruit.
The technology, health, services and construction sectors are now the leaders in job creation, while the military industry joins the list after a budget approved by Congress in Washington that exceeds one trillion dollars for the fiscal year of 2027.
But one of the Trump administration’s greatest economic guarantees is its energy agenda.
In recent days, the President announced the signing of the largest oil agreement in US history. It took over Venezuela, a country that has the largest confirmed hydrocarbon reserves on the planet.
“THE BIGGEST OIL DEAL IN WORLD HISTORY!” Trump said on his Truth Social network.
US oil industry with a wide advantage over its competitors
Under the agreement, the United States obtains “majority control of more than 65 billion barrels of proven oil reserves in Venezuela, at no cost to the American taxpayer.”
The pact allows the United States to more than double its crude oil reserves.
“The historic transaction, which more than doubles America’s oil reserves, increases our oil supply and helps substantially reduce gasoline prices for all Americans in the long term,” he added.
Following the agreement, the American oil giant Chevron said in a statement that it will invest more than $7 billion over the next five years, which will almost triple production to more than 600,000 barrels per day, compared to 2026.
With a wide advantage over its competitor, Saudi Arabia, the United States is today the largest oil producer and exporter in the world with an average of 13.8 million barrels per day.
From an economic point of view, the United States shields itself from the rest of the planet through an energy armor that allows it to ensure its supremacy in the midst of the process of a New World Order and historical geopolitical and geostrategic changes that screw it at the head of the world compared to China, India, Russia and the rest of the economic powers.
Added to all of the above is the great push by the White House to manufacture a huge infrastructure of cutting-edge technology and artificial intelligence in American territory and in the Western Hemisphere. At the same time, investments, production and exports in the arms industry return as a supreme priority in national security and income, which in previous decades made the United States great.
This situation has given a general turnaround to the US economy in the short, medium and long term, which step by step is separating itself from Chinese dependence and will go from a 70% consumer economy to one of openness combined with national production.
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