Newcastle are still fighting on four fronts this season, although their Carabao Cup run will end tonight unless they complete the most unlikely of turnarounds against Manchester City.
Even if they drop out of the League Cup, Howe's side still face a hectic fixture schedule, with seven more games to come before February is out. And the squad is stretched with several key players out injured.
Despite those injuries and the challenges ahead, Newcastle were unable to strengthen in the winter window.
Howe said: "Financially, it wasn't possible. As I said at the start of the window.
"There were players we were looking at for the future, younger players we could develop. Ultimately, it didn't happen. I didn't think there was a player coming in that could affect us."
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Asked whether not strengthening was a risk, he said: "Yes. But we were left with no other option.
"Every decision we make has a long-term implication. There is no guarantee signing somebody with the funds we had would help us short-term anyway.
"It is what it is and we are used to working in these conditions now. We have only been active in one window out of the last four or five.
"We are under financial restrictions. We have to be smart and decided to wait until the summer. The decision is that the summer window is a lot easier to recruit. There are more players are available and better value for money.
"We had a limited amount of money to use in this window and were the right players available to help us in the short-term? Those options weren't available to us, we can't sign players that don't exist, we have to sign players and we have to work under the conditions we are in."
Howe insists PIF remain fully committed to the club, saying: "There is a willingness to spend what we can but work within PSR limits."
Newcastle are currently without the likes of Tino Livramento, Emil Krafth and Fabian Schar, and both Bruno Guimaraes and Lewis Miley are set to miss tonight's Carabao Cup semi-final second leg at the Ethihad.
Howe said: "The squad is OK. If it was a fully fit squad it would be really strong. Of course it is not, so you have to get players fit.
"We need our injured players back fit. Until we do that, there is an imbalance, and we are certainly stretched defensively. But I am happy with the squad when it is at full strength."