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President Vladimir Putin of Russia must get a kick out of spreading disinformation to Americans for its own sake. Otherwise it is hard to see why he would bother. As has episodically been the case for eight years, Washington is abuzz over allegations of Russian manipulation. The special counsel investigating President Joe Biden’s son, Hunter, has charged an FBI informant with telling lies about the president that have been central to Republican efforts to impeach him; the indictment links the informant to Russian intelligence.
You might expect such a dramatic development to derail the impeachment. That would betray a touching faith that the truth mattered in the first place. Republicans who once trumpeted the informant’s claims are shrugging them away and insisting that impeachment will move ahead based on other suspicions and suppositions, though the Republicans’ two-seat majority in the House of Representatives is all but certain to doom any vote, given the misgivings of some members.
This is not to minimise Russian efforts to undermine democracy. Robert Mueller, the special counsel who investigated Russian interference in the 2016 election, found it “sweeping and systematic”. But politicians of both parties have shown that when it comes to spinning conspiracies and spreading dysfunction they can manage on their own. Republican members of the House are the best at this. The most shocking facts are not emerging from the shadows thanks to congressional investigations but are being paraded in the open thanks to congressional inanity, from the refusal of House Republicans even to vote on the Senate’s bipartisan agreement to tighten border security and help Ukraine and Israel, to their inability to agree among themselves on budget priorities with a government shutdown looming, tiresomely, yet again.
The story of the informant, or misinformant, has the familiar, miasmic qualities of other scandals in the Trump era. No one is said to have peed on anyone, but the tale does involve vivid characters, duplicitous dealings in European capitals, affectionate texts with FBI agents, investigations of investigations, ties to Ukraine and, in the end, benefits to Russia.
Before he was arrested in mid-February Alexander Smirnov, a dual citizen of America and Israel, had been slipping the FBI information for 13 years. The agency trusted him enough to authorise him to commit crimes as part of investigations, though it warned him not to lie, at least not to the FBI, according to the indictment. Mr Smirnov, now 43, was in contact with his handler almost daily; he called the agent “bro”.
In 2013 Mr Smirnov was struggling with credit-card debt of $125,000, according to the Los Angeles Times, but prosecutors say he now has access to $6m, though he does not own a house or have a job, at least in America. He does have nine guns at home, prosecutors say. He has pleaded not guilty.
Here comes the complicated bit. You recall Burisma, the Ukrainian gas firm of which Mr Biden’s son, Hunter, became a member of the board while his father was vice-president? In 2017 Mr Smirnov mentioned to his handler that Hunter Biden was on the board, as was known. Then, in 2020, as Mr Biden was running against Donald Trump for president, Mr Smirnov sent his handler texts “expressing bias” against Mr Biden, according to the indictment. When he promised information incriminating the Bidens, the handler replied, “that would be a game changer.”
Meanwhile, in early 2020, the attorney-general under Mr Trump had directed Scott Brady, a US attorney, to investigate the suspicions of Biden family corruption about which Mr Trump had previously demanded that Ukraine launch an investigation, triggering Mr Trump’s first impeachment. After Mr Brady tasked the FBI with searching its files for “Burisma”, the mention from 2017 popped up, and the handler contacted Mr Smirnov. This time Mr Smirnov said Burisma’s chief executive told him as far back as 2015 that the company paid bribes of $5m apiece to the Biden men. The FBI recorded the new accusations on a “Form 1023”.
In 2023 Republican congressmen got wind of the form and demanded it, extracting it and publicising it after threatening the FBI director with contempt. Although the information was uncorroborated, Nancy Mace, a South Carolina congresswoman, declared at the first impeachment hearing in September that “we already know the president took bribes from Burisma.” Jim Jordan of Ohio called the FBI document “the most corroborating evidence we have”, while Elise Stefanik of New York saw “the biggest political corruption scandal” of “the past 100 years”.
An imperfect spy
Mr Smirnov’s claims did not withstand the slightest scrutiny, according to the indictment. He did not meet any Burisma executives before 2017, and meetings and calls that he described never took place, the indictment says. When agents met with him in September, according to the indictment, Mr Smirnov changed his story and told new lies. He said that when Hunter Biden stayed in Kyiv’s Premier Palace hotel his calls may have been recorded by Russian intelligence. Yet Mr Biden has never even been to Ukraine. Mr Smirnov, prosecutors warned, “is actively peddling new lies that could impact US elections after meeting with Russian intelligence officials in November”. They have successfully argued that he is a flight risk who should be detained pending trial.
No Republican who hyped Mr Smirnov’s accusations has expressed regret, and the leader of the committee pursuing impeachment, James Comer, insists his inquiry, which has yet to produce evidence of a crime by the president, “is not reliant” on them. It would be reassuring to discover that, at bottom, Mr Putin is responsible for all this nonsense. What seems more probable is that he offered an assist to politicians already more than capable of wasting their chance to do some good while in office. ■
Inflation barely budged in April as tariffs President Donald Trump implemented in the early part of the month had yet to show up in consumer prices, the Commerce Department reported Friday.
The personal consumption expenditures price index, the Federal Reserve’s key inflation measure, increased just 0.1% for the month, putting the annual inflation rate at 2.1%. The monthly reading was in line with the Dow Jones consensus forecast while the annual level was 0.1 percentage point lower.
Excluding food and energy, the core reading that tends to get even greater focus from Fed policymakers showed readings of 0.1% and 2.5%, against respective estimates of 0.1% and 2.6%.
Consumer spending, though, slowed sharply for the month, posting just a 0.2% increase, in line with the consensus but slower than the 0.7% rate in March. A more cautious consumer mood also was reflected in the personal savings rate, which jumped to 4.9%, up from 0.6 percentage point in March to the highest level in nearly a year.
Personal income surged 0.8%, a slight increase from the prior month but well ahead of the forecast for 0.3%.
Markets showed little reaction to the news, with stock futures continuing to point lower and Treasury yields mixed.
People shop at a grocery store in Brooklyn on May 13, 2025 in New York City.
Spencer Platt | Getty Images
Trump has been pushing the Fed to lower its key interest rate as inflation has continued to gravitate back to the central bank’s 2% target. However, policymakers have been hesitant to move as they await the longer-term impacts of the president’s trade policy.
On Thursday, Trump and Fed Chair Jerome Powell held their first face-to-face meeting since the president started his second term. However, a Fed statement indicated the future path of monetary policy was not discussed and stressed that decisions would be made free of political considerations.
Trump slapped across-the-board 10% duties on all U.S. imports, part of an effort to even out a trading landscape in which the U.S. ran a record $140.5 billion deficit in March. In addition to the general tariffs, Trump launched selective reciprocal tariffs much higher than the 10% general charge.
Since then, though, Trump has backed off the more severe tariffs in favor of a 90-day negotiating period with the affected countries. Earlier this week, an international court struck down the tariffs, saying Trump exceeded his authority and didn’t prove that national security was threatened by the trade issues.
Then in the latest installment of the drama, an appeals court allowed a White House effort for a temporary stay of the order from the U.S. Court of International Trade.
Economists worry that tariffs could spark another round of inflation, though the historical record shows that their impact is often minimal.
At their policy meeting earlier this month, Fed officials also expressed worry about potential tariff inflation, particularly at a time when concerns are rising about the labor market. Higher prices and slower economic growth can yield stagflation, a phenomenon the U.S. hasn’t seen since the early 1980s.
19 May 2025, Berlin: Apricots are sold at a greengrocer for 7.98 euros per kilogram. Grapes and papaya are also on offer.
Photo by Jens Kalaene/picture alliance via Getty Images
Germany’s annual inflation hit 2.1% in May approaching the European Central Bank’s 2% target but coming in slightly hotter than analyst estimates, preliminary data from statistics office Destatis showed Friday.
The print compares with a 2.2% reading in April and with a Reuters projection of 2%.
The print is harmonized across the euro zone for comparability.
So-called core inflation, which strips out more volatile food and energy prices, dipped slightly from April’s 2.8% to 2.9% in May. The closely watched services print meanwhile eased sharply, coming in at 3.4% compared to 3.9% in the previous month.
Energy prices fell markedly for the second month in a row, tumbling by 4.6% in May.
Germany’s consumer price index has been closing in on the European Central Bank’s 2% target over recent months, in a positive signal amid ongoing uncertainty about the economic outlook for Europe’s largest economy.
Domestic and global issues have mired expectations for Germany’s financial future.
One the one hand, U.S. President Donald Trump’s tariffs could damage economic growth, given Germany’s status as an export-reliant country, though the potential impact of such duties on inflation remains unclear. But frequent policy shifts and developments have been muddying the picture.
On the other hand, Germany’s newly minted government is starting to get to work and has made the economy a top priority. Questions linger about when and to what extent the new Berlin administration’s policy plans might be realized.
The ECB is set to make its next interest rate decision on June 5, with traders last pricing in an over 96% chance of a quarter point interest rate reduction, according to LSEG data. Back in April, the central bank had cut its deposit facility rate by 25 basis points to 2.25%.
This is a breaking news story, please check back for updates.