BBC News with Stewart Macintosh.

The United States has announced it’s suspending another charge of military aid to Egypt until it’s seized more progress towards democracy. The State Department spokeswoman said a review directed by President Obama had concluded that the US needed to recalibrate its assistance. Katy Watson reports from Washington.

The US has been under pressure to respond to the ousting of President Morsi but this announcement is more a slap on the wrist than severe punishment. In August, the US delayed a delivery of F16 jets and canceled a joint military exercise. Now the State Department says it will withhold the further delivery of aircraft, tanks, missiles and helicopters as well as 260 million dollars in cash. But it will continue to provide funding for education, health, military training and assistance for counter-terrorism and security in the Sinai Peninsula.

President Obama has nominated Janet Yellen as the new head of the US Federal Reserve. Ms. Yellen is currently vice chair of the bank and will take over from Ben Bernanke, its current head in January. President Obama urged the Senate to confirm Ms. Yellen straight away. In her acceptance speech, she said more work needed to be done to pull the economy away from the recession.

“While we have made progress, we have farther to go. The mandate of the Federal Reserve is to serve all the American people and too many Americans still can’t find a job and worry how they will pay their bills and provide for their families. The Federal Reserve can help if it does its job effectively.”