US Economy Grows 3.4% Despite High Prices

What is the letter asking Iran to do?

It offers to restart diplomacy, or talks between governments. The US wants Iran to make early promises about its nuclear programme.

In return, the process could lead to the Strait of Hormuz reopening within seven days. The US would also offer relief from sanctions, which are economic restrictions.

Why is the Strait of Hormuz so important?

It is a key water route. The letter comes after mediation, mainly by Qatar, and it is seen as an effort to prevent a new major conflict between the United States and Iran.

Has Iran replied to the letter yet?

A reply is expected soon. However, Iran does not want to make promises that cannot be changed before the US takes its own steps.

What kind of promise does the US want first?

The US wants clear early action on Iran's stockpile of highly enriched uranium. One possible step would be sending that uranium to another country.

And why is Iran unwilling to agree now?

Iran fears that US steps could later be reversed. For example, the US could lift sanctions on Iranian oil exports and then bring them back.

Iran also sees its uranium stockpile as an important point in the negotiations.

Could another country help both sides trust an agreement?

That has been discussed. China is often named as the only country with enough status to guarantee that both sides keep their promises.

What has Iran said publicly about its conditions?

Iran's chief negotiator, Mohammad Ghalibaf, said Iran's conditions had been clearly given to mediators. He said progress needs agreement on all seven conditions.

They include lifting sanctions, ending asset freezes, and ending the war on all fronts. That last condition would require an Israeli ceasefire in Lebanon.

Is there another idea for dealing with the uranium?

Iran has proposed blending the uranium stockpile down. That would mean it could no longer be used to make a nuclear weapon.

Iran also resists the return of UN nuclear inspectors. It fears they could give the US information about where the stockpile is and what condition it is in.

So, the next response from Iran could be very important.

Yes. Vance returning to the talks is a sign that the US has not given up on diplomacy. Iran's answer may show whether talks can restart.

Thank you, Ella.

Our second story is about new signs of growth in the US economy.

Noah is LinguaWire's correspondent for business, and he has been looking at the new data.

Hello, Daniel. The US economy grew at an annual rate of 3.4% from July to September.

What does that figure measure?

It measures gross domestic product, usually called GDP. GDP is a broad measure of economic activity in a country.

The 3.4% annual rate was faster than the previous quarter, when GDP grew at a 2.2% annual rate.

What helped the economy grow more quickly over the summer?

Consumer spending was one important reason. Investment by artificial intelligence, or AI, companies was another.

These companies are building data centres and spending heavily to develop the technology.

Does this growth mean that most Americans feel positive about the economy?

Not necessarily. Many Americans say they feel worried because everyday costs remain high.

The conflict with Iran has also pushed up energy costs, including gasoline.

Is consumer spending rising equally for all households?

No. Higher-income Americans have been better able to manage high inflation. Lower-income Americans are finding it harder.

Wage growth has also been slower than inflation, putting further pressure on many household budgets.

Do the figures show what is happening to family savings?

Yes. The personal saving rate was 3.8% in September. It was 4.1% in August.

And what is the latest figure for prices?

Prices were 3.6% higher in September than one year earlier. That is above the Federal Reserve's 2% target.

Why does the Federal Reserve target matter?

The Federal Reserve is the US central bank. It watches this inflation measure closely when deciding its benchmark interest rates.

What did the central bank decide this week?

It decided not to raise interest rates on Wednesday. But the new inflation figure adds pressure to raise them at its meeting in December.

So the economy is growing, but many people are still under pressure.

That is right. The figures arrive days before the midterm elections, when the economy and the cost of living are major concerns for many voters.

Thank you, Noah.

Part one: vocabulary.

Sanction.

A sanction is an economic restriction; in the story, “The US would also offer relief from sanctions, which are economic restrictions.”

The country faces sanctions on oil sales.

Stockpile.

A stockpile is a large amount kept for future use; in the story, “The US wants clear early action on Iran's stockpile of highly enriched uranium.”

The town has a stockpile of food for emergencies.

Ceasefire.

A ceasefire is an agreement to stop fighting; in the story, “That last condition would require an Israeli ceasefire in Lebanon.”

The two sides agreed to a ceasefire.

Part two: the grammar.

Object pronouns: “For example, the US could lift sanctions on Iranian oil exports and then bring them back.”

Object pronouns replace a noun after a verb. Here, “them” means “sanctions.”

In the story, we hear: “For example, the US could lift sanctions on Iranian oil exports and then bring them back.”

I see my friends every day, and I help them.

Repeat after me: For example, the US could lift sanctions on Iranian oil exports and then bring them back.