House Unauthorizes Involvement in Yemeni Civil War
November 14, 2017
House declares US Yemen involvement unauthorized; Produce prices up on services, inflation ticking up; Central Bankers to continue investor guidance.
- House declares US Yemen involvement unauthorized. The House of Representatives overwhelmingly passed a nonbinding resolution that the US’ involvement in the civil war in Yemen, wildly considered to be a proxy for a fight with Iran, is not covered by the legislation that allows the US to fight terrorism and invade Iraq. The resolution does not call for a halt to the American support but publicly acknowledges the Pentagon has been sharing targeting information and refueling warplanes that Saudi Arabia and other allies are using to attack Houthi rebels. The conflict in Yemen, with the government (aided by Saudi Arabia) attacking the Houthi rebels, is considered the largest humanitarian crisis in the world. The UN estimates that 10,000 civilians have been killed in the conflict in the last two years, and that access to clean water, food and utilities has been severely limited. The legislation was cosponsored by Democrats Ro Khanna and Jim McGovern. [Politico]
Economic Indicators and News
- Produce prices up on services, inflation ticking up. The produce price index was up 0.4%, versus a 0.1% expected increase. The price index revealed the biggest increase in wholesale inflation in five years. A weakening dollar has also helped to lift the PPI, as imported inputs are comparatively more expensive. The inflation revealed by the index will likely further the case for a Fed rate hike come December. [CNBC]
- Central Bankers to continue investor guidance. Central bankers have vowed to continue their policy of guiding investors about upcoming policy moves, in an effort to not cause panic in the event of a rate hike. Mario Draghi of the European Central Bank has been particularly strong on these efforts, indicating he believes communication has been an effective monetary policy tool. As banks attempt to wind down the massive bond portfolios they’ve accrued during the financial crisis, they seek tools to prevent “taper tantrum,” or short term market crashes due to sudden announcements of bond sales. [CNBC]