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U.S. Economy at a Crossroads: Rising Inflation, Fed Caution, and Fading Growth Outlook

  U.S. Economy at a Crossroads: Rising Inflation , Fed Caution, and Fading Growth Outlook A Fragile Balance in the World’s Largest Economy The United States economy is entering a delicate phase where multiple warning signals are beginning to align. Inflationary pressures are creeping upward again, the Federal Reserve is adopting a cautious “wait-and-see” approach, and economic forecasts are gradually losing their earlier optimism. This combination reflects not a sudden crisis, but a slow tightening of economic conditions that could shape both domestic stability and global markets in the months ahead. Inflation: A Persistent and Evolving Challenge After a period of relative easing, inflation in the U.S. appears to be regaining momentum. While it may not have returned to peak levels seen in previous years, the upward drift is enough to raise concerns among policymakers and investors alike. Key contributors include rising housing costs, resilient consumer demand, and fluctuations in ...
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Strait of Hormuz Shutdown: What It Means for Pakistan’s Economy, Security, and Survival

  Strait of Hormuz Shutdown: What It Means for Pakistan’s Economy, Security, and Survival A Lifeline Under Threat The Strait of Hormuz is one of the most strategically vital chokepoints in the world, handling nearly a fifth of global oil trade. For Pakistan, a country heavily dependent on imported energy, any prolonged closure of this narrow passage is not just an international issue—it is a direct national concern. The continued disruption of this route has far-reaching implications for Pakistan’s economy, energy security, foreign policy, and domestic stability. Energy Crisis Looming Large Pakistan imports a significant portion of its crude oil and liquefied natural gas (LNG) from Gulf countries such as Saudi Arabia, the UAE, and Qatar—all of which rely on the Strait of Hormuz for exports. A sustained closure would severely disrupt supply chains, leading to immediate shortages of fuel across the country. This would likely trigger sharp increases in petrol and diesel prices, making...

Pakistan–China Friendship: A Timeless Partnership Renewed Through Changing Eras

  Pakistan–China Friendship: A Timeless Partnership Renewed Through Changing Eras The relationship between Pakistan and China is often described as higher than the mountains, deeper than the oceans, and sweeter than honey. These poetic expressions are not merely diplomatic clichés but reflect a partnership that has endured decades of regional and global transformations. The friendship between the two nations has evolved continuously, adapting to shifting geopolitical landscapes, economic priorities, and technological advancements. It is this dynamic quality—this ability to be rediscovered and redefined—that makes the Pakistan–China bond truly unique and enduring. At its core, the Pakistan–China relationship is built on mutual trust, respect, and shared strategic interests. Since the establishment of diplomatic ties in 1951, both countries have consistently supported each other on key international issues. Pakistan was among the first countries to recognize the People’s Republic of ...

Trump has ordered TSA workers be paid, regardless of what Congress does. Here’s what we know

  With Congress’ debate over Department of Homeland Security funding now likely to extend for at least several more days, President Donald Trump on Friday issued a promised executive action that Transportation Security Administration employees be paid immediately. “I hereby direct the Secretary of Homeland Security, in coordination with the Director of the Office of Management and Budget, to use funds that have a reasonable and logical nexus to TSA operations to provide TSA employees with the compensation and benefits that would have accrued to them if not for the Democrat-led DHS shutdown, consistent with applicable law,” the president wrote. How that would work, exactly, is largely unclear. But TSA workers could start seeing their paychecks as soon as Monday, according to DHS. Some context: Roughly 61,000 TSA employees are missing their second full paycheck after funding for DHS, TSA’s parent agency,  lapsed  on February 14. The impasse has led to thousands of...

How Will the Conflict in the Middle East Affect Economies in Asia and the Pacific?

  Surging fuel prices and disruption to shipping risk widespread fallout across the region, but policymakers should resist market intervention in favor of support measures for vulnerable groups. Geopolitical risk is again at the center of the global economic outlook. While Asia and the Pacific has limited direct trade exposure to Iran and neighboring countries, it could still face significant adverse economic consequences. Disruptions in the Middle East can ripple out to Asian economies through multiple channels. Policymakers across the region should be prepared to respond to potential shocks to energy prices, trade flows, and financial conditions. Historically, conflicts in the Middle East have affected the global economy primarily through oil supply disruptions. Today, the risks are broader. The current crisis highlights vulnerabilities not only in energy production but also in global transport networks for oil, gas, goods, and people.   The Strait of Hormuz—a narrow waterwa...

Digital Skills Are Reshaping Jobs, and Paychecks, Across Asia and the Pacific

  These charts illustrate how demand for digital and AI skills has surged in the region, and how rising digital proficiency is reshaping jobs and widening wage gaps. Digital tools are now part of daily life across Asia and the Pacific, and labor markets are following the trend.  Employers increasingly expect workers to be comfortable with technology, whether they are teachers, shop assistants, or software engineers.  Yet until recently, policymakers had limited evidence on how deeply digital technologies had penetrated labor markets, and which skills employers rewarded most. Our research attempted to address this gap by using more than 6 million job postings on the Indeed employment website. These listing were spread across Australia, India, Malaysia, the Philippines, Singapore, and the Republic of Korea, from 2019–2024. A large language model classified each job’s required level of digital and AI skills. On average across the six countries, about 45% of postings require ...

What it would take to end the Iran war

  On March 23, President Donald Trump announced that the United States and Iran had reached “major points of agreement”. Shortly after, he claimed that Tehran had delivered a significant concession related to oil, gas, and the Strait of Hormuz . These statements, along with the decision to postpone strikes on Iranian energy infrastructure, generated considerable diplomatic optimism. Global markets responded positively to what was perceived as a sign of de-escalation. This optimism, however, conflates two analytically distinct phenomena: the emergence of a mutually hurting stalemate , which creates the conditions under which parties become willing to negotiate, and the existence of a viable bargaining architecture, which determines whether durable agreements can be reached. In the current conflict, the former is beginning to crystallise while the latter remains structurally absent. The stalemate condition American scholar William Zartman ’s concept of the mutually hurting stalemat...