May 5, 2026

USA

War escalates on multiple fronts and oil prices rise, as Iran contradicts Trump’s claims.

|*”*|*”*|*”*|*”*|*”*|*”*|*”*|*”*|*”*|*”*|”*|*”*|*”*|*”*|*”*|

Here’s the latest

• Trump’s threat: President Donald Trump said the US may blow up and completely obliterate Iran’s electric plants and oil wells if a deal to end the war is not reached and the Strait of Hormuz is not reopened.

• Peace talks: Iran contradicted Trump’s claims that it had agreed to “most of” the US’ 15-point list of demands to end the war, describing the proposal as “unrealistic.”

• Energy costs: Meanwhile, oil prices rose today after Trump said he wanted to “take the oil in Iran,” with Brent crude crossing $116 a barrel. The average US gas price is now $3.99 according to AAA, the highest since 2022.

• Latest strikes: At least two people were killed in a US-Israeli strike on an orphanage in Iran, state media reported. A UN peacekeeper was killed in Lebanon as Israeli forces struck parts of the country overnight, Indonesian and human rights officials said, and an oil refinery complex in Israel was hit by debris from an intercepted attack.AllCatch up

|*”*|*”*|*”*|*”*|*”*|*”*|*”*|*”*|*”*|*”*|”*|*”*|*”*|*”*|*”*|

Lebanese soldier killed in southern Lebanon, as Israeli military escalates offensive

By oliva

“This attack comes in the context of Israel’s ongoing assault on Lebanon, which has resulted in martyrdom and injuries among both military personnel and civilians,” the statement added.

It also follows the killing of an Indonesian UN peacekeeper in southern Lebanon on Sunday, according to Indonesian and human rights officials, as Israeli forces hammered parts of the country overnight.

Xenix News has asked the Israeli military for comment.

Rising death toll in Lebanon: At least 1,247 people have been killed in Israeli strikes in Lebanon since March 2, the country’s Health Ministry said in an update today. At least 124 children are among those killed, the ministry said yesterday.

Xenix News Dana Karni, Charbel Mallo and Catherine Nicholls contributed tot his report.

New strikes, peace talks and rising energy costs: The latest on the Middle East conflict

By Maureen

Sec. of State Marco Rubio looks on as he speaks to the press before his departure from Le Bourget, France, on Friday.

US Secretary of State Marco Rubio declined to say this morning who the US is negotiating with in Iran but said “fractures” have emerged within Tehran’s leadership.

This comes after Iran’s Foreign Ministry spokesperson, Esmaeil Baghaei, said the US’s proposal for ending the conflict contains “unrealistic” demands.

Meanwhile, strikes across the region continued today, with a US-Israeli strike on an orphanage west of Tehran killing at least two people, according to Iran’s semi-official Fars News Agency.

If you’re just joining us, here’s a brief overview of the latest headlines:

  • A missile said to be launched from Iran was “neutralized” by NATO assets in the Mediterranean after it entered Turkish airspace, according to Turkey’s defense ministry.
  • An Indonesian UN peacekeeper was killed in southern Lebanon Sunday, according to Indonesian and human rights officials, as Israeli forces pummeled parts of the country overnight.
  • More ships are passing through the Strait of Hormuz, according to shipping data — but still far fewer than before the Middle East conflict erupted. Pakistan announced last weekend Iran would allow 20 of its flagged ships to pass through.
  • Following a wave of attacks directed at Israel on Saturday, Iran-backed Houthi militants in Yemen could target a key global trade artery, the Bab el-Mandeb Strait, inflicting more economic pain in the Gulf, a Middle East expert warned.
  • Several countries are implementing drastic measures to counter the deepening energy crisis unleashed by the war in Iran. Asia is feeling the impact first and the shock will move westward, JPMorgan warned in a report.
  • The average US gas price edged up by 1 cent to $3.99 according to AAA, the highest since 2022, but still just short of the $4 benchmark.

Xenix news Chris Isidore, Michael Williams, Mustafa Qadri, Tim Lister, Masrur Jamaluddin, Charbel Mallo, Sana Noor Haq, Billy Stockwell and Catherine Nicholls contributed to this report.

Thousands of people have reportedly been killed in the Middle East in the past 31 days

Mourners attend a funeral on March 9 at Behesht-e Zahra cemetery on the outskirts of Tehran for a person killed in recent airstrikes.

Thousands of people have been killed during the conflict in the Middle East since it began on February 28, according to a Xenix news tally of death tolls released by regional authorities.

Here’s what those authorities have said about the number of people reportedly killed in the region since the war began. Xenix news is not able to independently verify these numbers.

  • Iran: At least 1,900 people have been killed in attacks on Iran since February 28, the Iranian Red Crescent reported on Friday. On March 16, Iran’s foreign minister said “hundreds of Iranian civilians,” including more than 200 children, had been killed since the conflict began.
  • Lebanon: At least 1,247 people have been killed in Israeli strikes in Lebanon since March 2, the country’s Health Ministry said in an update today. At least 124 children are among those killed, the ministry said yesterday.
  • Iraq: At least 101 people have been killed across Iraq since the war began, authorities have said. In the semi-autonomous Kurdistan Region, at least 13 people have been killed, according to the regional government.
  • Israel: Some 19 civilians have been killed inside Israel since the conflict began, not including those who died indirectly because of strikes. Six Israeli soldiers have also been killed in southern Lebanon, according to the Israeli military.
  • USA: Thirteen US service members have been killed since the US war with Iran began a month ago, according to the US Central Command.

Dozens of people have also been killed in other countries in the region since the conflict began. Deaths due to the conflict have been reported in the United Arab Emirates, Qatar, Kuwait, the occupied West Bank, Oman, Bahrain and Saudi Arabia since February 28, according to local authorities.

Xenix News Charbel Mallo, Eyad Kourdi, Dana Karni, Aqeel Najim, Nechirvan Mando, Mohammed Tawfeeq, Eugenia Yosef, Oren Liebermann, Tal Shalev, Tamar Michaelis, and Zachary Cohen contributed to this report.Read more

Trump Iran war tension global crisis

Hazel oliva

Journalists work at the site of a car repair shop and dealership damaged by a strike amid the US-Israeli conflict with Iran, in Tehran, Iran, on March 28.

As his Iran war reaches a one-month crossroads, President Donald Trump argues he’s fashioning a way out — even if there’s no proof one exists.

The president claims the US is having “serious discussions” with a “new and more reasonable regime in Tehran.”

Iran’s remnant government, however, insists no direct talks are happening and Monday described US proposals to end the war as “excessive, unrealistic, and unreasonable demands.”

The back and forth and Trump’s whiplash rhetoric shows the war has hit a fork in the road.

Down one path is a fast-escalating conflict that could widen further with the injection of US ground troops and cause a worsening worldwide economic conflagration.

But the high costs of the showdown for the United States and the Islamic Republic also give reason to hope the war could be reined in before it gets even worse.

Pakistan took the initiative on Sunday by leading a nascent third-party attempt with Middle Eastern powers to look for a way out. The effort has a daunting mandate: bridging antithetical endgame demands of an erratic US president and an Iranian regime defined by hatred of America.

This war has already shown the US and Israel have devastated Iran’s air forces, navy and much of its ability to pose existential external threats. But they’ve so far failed to eradicate the revolutionary regime that has haunted both countries for decades. At issue now is whether anyone can build an off-ramp that might deprive either side of a knockout but offer political and strategic carrots for each to claim vindication.

US Navy sailors stand watch on the aircraft carrier USS Gerald R. Ford as it transits the Suez Canal, en route to support the Operation Epic Fury attack on Iran on March 5.

On Sunday night, Trump appeared to be building a misleading template for a total US victory, arguing that the killing of senior Iranian leaders including Ayatollah Ali Khamenei equaled “regime change,” even if there’d been no letup of vicious repression of civilians whom he’d previously pledged to protect.

“We’ve had regime change, if you look already, because the one regime was decimated, destroyed, they’re all dead,” the president told reporters aboard Air Force One. “The next regime is mostly dead, and the third regime, we’re dealing with different people than anybody’s dealt with before.”

The best estimate of many Iran experts is that while many top clerical and military leaders have perished, the regime previously decentralized power to ensure it could survive high-profile assassinations and still appears to be controlled by the Islamic Revolutionary Guard Corps.

Trump’s blend of hyperbole and misdirection makes it hard to know whether he’s trying to create a diplomatic breakthrough or a justification for more intense military action.

He wrote on Truth Social Monday morning that if a deal is not soon reached and the Strait of Hormuz remains shut he will conclude America’s “lovely ‘stay’” in Iran by “blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!).”

Such a move would be sure to incite a fearsome Iranian response and send the global economy into meltdown.

But the threat hinted at Trump’s apparent desire to end the war quickly — even if Tehran is showing no public sign that its desperate for a “deal,” as he claims.

Trump’s initial timeline is under pressure

Iran’s regime saved itself with classically Trumpian move: It weaponized a point of unique leverage for economic and geopolitical gain by closing the Strait of Hormuz — an oil exporting choke point. Economic reverberations are piling pressure on Trump inside and outside the US, as Iran becomes the latest adversary to counter America’s military superiority with an asymmetric response.

The war has already surpassed the lower marker of the “four to six weeks” timeline initially sketched by the administration. Trump’s still-hazy rationale for waging war is matched by his inability to point to an off-ramp. The closure of the strait and Iran’s stocks of highly enriched uranium, meanwhile, make it hard for him to use a characteristic device — a unilateral declaration of victory. He’s therefore facing a bleak decision with tragic echoes in modern American warfare: whether or not to escalate the war in search of a way out.

An aerial view of the Iranian shores and the island of Qeshm in the Strait of Hormuz on December 10, 2023.

Still, the pain that both sides would endure if the war went on means there are plausible reasons to talk.

Iran is isolated; has become a pariah in its own region; and has absorbed cataclysmic damage to its military capacity. While it has shown a continued ability to hit Israel, US military installations and American-allied Gulf states with missiles and drones, its resources are finite and it badly needs sanctions relief to rescue a shattered economy.

A halt to fighting might allow Iran to lock in its goal of regime survival. And by demonstrating that it can close strait, it might have created a deterrent effect if either the US or Israel wanted to restart the war.

Trump has good reasons to end the war too. His approval ratings are diving, stocks are plunging and economic distress is mounting among midterm election voters already struggling to pay for food and housing. The conflict jars with a dominant principle of his “America First” movement — no more foreign wars. And his second term and presidential legacy risk being consumed.

Conditions for a way out do exist — at a pinch. The question is whether a US president who has hardly lived up to his claim to be the world’s greatest negotiator and a remnant Iranian regime that has seen its top leaders wiped out can show the skill and will to provide each other a face-saving exit.

President Donald Trump salutes during a dignified transfer at Dover Air Force Base on March 7.

The war is expanding — not dying down

The need for fighting to stop was laid bare as the war expanded at the weekend.

Yemen’s Houthis — an Iran-backed militia — launched a missile attack against Israel in their first major move of the conflict. There were no casualties, but the move raised concerns that another key shipping route could be under threat.

“I think the Houthis starting to strike, if you will, that’s going to become the Western Front of this war,” retired Adm. James Stavridis, a former NATO supreme allied commander, told Xenix news Michael Smerconish. He said the Houthis’ ability to control maritime traffic headed for the Suez Canal while the strait is closed was “an enormous gun pointed at the head of the global economy.”

Houthi supporters demonstrate in solidarity with Iran in Sanaa, Yemen, on Friday.

This could exacerbate economic impacts already being felt, and that are likely to worsen as the last ships that left the Persian Gulf before the war reach their destinations. In one sign of the global impact of the war, the Philippines has declared a national energy emergency amid rising political unrest.

In other signs of escalation, at least 10 US service members were injured in an attack on Prince Sultan Air Base in Saudi Arabia. Iran vowed to target US and Israeli universities, and Israeli Prime Minister Benjamin Netanyahu ordered the Israel Defense Forces to carve out an expanded security buffer zone in Lebanon.

Against this dire backdrop, the most concrete diplomatic initiative so far played out in Islamabad. Pakistan hosted talks involving Saudi Arabia, Turkey and Egypt. It’s a rare nation with strong relations with Washington and Tehran. Pakistani Foreign Minister Ishaq Dar said in a statement that his country “will be honored to host and facilitate meaningful talks between the two sides in coming days.” Two Trump administration officials told Xenix news last week that discussions in Pakistan were possible. But there’s no confirmation that they are imminent.

Foreign Ministers Badr Abdelatty of Egypt, Prince Faisal bin Farhan Al Saud of Saudi Arabia, Ishaq Dar of Pakistan and Hakan Fidan of Turkey meet to discuss regional de-escalation in Islamabad, Pakistan, on Sunday.

The possibility that fighting will intensify seems to be rising

The USS Tripoli, an amphibious assault ship carrying Marines, has arrived in the region. Another Marine Expeditionary Unit is en route from the US West Coast. More than 1,000 soldiers from the 82nd Airborne have been ordered to deploy.

The buildup is far short of an invasion force. But analysts talk of a possible assault on Kharg Island — the epicenter of Iran’s oil industry in the northern Persian Gulf — or other strategic islands critical to cross-strait navigation. Another ultra-high-risk US mission could aim to snatch Iran’s stocks of highly enriched uranium that might allow it to reconstitute its nuclear program.

But the possibility of heavy US casualties in any ground battles is sharpening debate over the war back home, where even some lawmakers loyal to Trump are worried. Democrats are meanwhile warning against an escalation.

“There’s a reason why Donald Trump is not coming before the American people for approval for this war. It’s because he knows what the American people feel, which is that they don’t want this, that they want a government that is focused on them, lowering costs,” Democratic Sen. Andy Kim said on Xenix news “State of the Union.”

Demonstrators take part in a "No Kings" protest against President Donald Trump's administration policies in New York City on Saturday.

Those potential costs on the battlefield and at home only underscore the president’s unappetizing options and the gamble he took by deciding to go to war in the first place.

History shows most modern wars end more messily than presidents predict when they launch them. Even if Trump now opts for diplomacy over escalation, this one now threatens to undercut his bullish claims about the invulnerability of US power and his own global dominance.

This story and headline have been updated with new reporting.

2025-07-23T234127Z_1209100761_RC2MSFAF6L25_RTRMADP_3_USA-TRUMP-EPSTEIN-1753373781
6 min read

✨✨✨✨✨✨✨✨✨✨✨✨✨✨

What we’re covering

• Epstein files: Ghislaine Maxwell, jailed for 20 years for conspiring with Jeffrey Epstein to abuse minors, sent a clear message to Donald Trump today that if the president were to grant her clemency, she would clear his name of any wrongdoing as it pertains to Epstein. Separately, members of Congress can review unredacted versions of the Epstein files at the Department of Justice today.

• DHS funding: Lawmakers are returning to Washington with just days to find a funding solution on the Department of Homeland Security or see an agency shutdown. Democrats are demanding reforms to federal immigration enforcement.

• Super Bowl reaction: Trump — who skipped the Super Bowl and attended a watch party in Florida — called last night’s Bad Bunny’s halftime performance “a slap in the face” and claimed “nobody understands a word” said by the Puerto Rican music star.AllCatch upEpstein files

✨✨✨✨✨✨✨✨✨✨✨✨✨✨

DHS negotiations remain stuck on Capitol Hill

The deadline for funding the Department of Homeland Security is Friday at midnight, but Republican and Democratic negotiators have yet to make significant progress, sources tell Xenix News

The lack of serious progress over the weekend raises the stakes that funding for the department could lapse in just a matter of days as Democrats have sought to make major reforms to US Immigration and Customs Enforcement and Customs and Border Protection practices as part of these talks.

Democrats sent some legislative text to Republicans over the weekend that crystalized their list of demands, a source briefed on the matter told Xenix News. Yet, there hasn’t been a sustained back-and-forth. One source characterized it as a car stuck in neutral but sort of rolling down a hill – so not totally stalled out.

Last week, Democrats and Republicans were engaged in a public fight over who was stalling the talks, a sign that the negotiations aren’t yet at a serious point.

It’s possible that Senate Majority Leader John Thune may need to begin the process of filing cloture on another short-term funding stopgap, known as a continuing resolution, but again, it’s not clear that Democrats would back that plan barring significant progress on Republicans meeting their demands on ICE reforms.Read more

Catch up on the latest on the Epstein files, including Ghislaine Maxwell’s reaction to House deposition

This photo provided by the New York State Sex Offender Registry shows Jeffrey Epstein on March 28, 2017.

The fallout from the release by the Department of Justice of millions of files related to convicted sex offender Jeffrey Epstein continued unabated today, here and abroad.

His jailed associate Ghislaine Maxwell invoked the Fifth Amendment during a virtual deposition as her attorney made an extraordinary overture. She is currently serving time at a minimum security prison in Bryan, Texas.

If you’re just joining us, here’s the latest:

Maxwell deposition:

  • House Oversight Committee Chair James Comer called the Maxwell’s decision to invoke the Fifth “very disappointing” and said lawmakers “had many questions to ask about the crime she and Epstein committed, as well as questions about potential co-conspiracy.”
  • Maxwell sent a clear message to Donald Trump: If the president were to grant her clemency, she would clear his name of any wrongdoing as it pertains to Epstein. The extraordinary overture came via a statement from Maxwell’s lawyer.
  • Epstein survivors urged members of the House Oversight Committee to treat Maxwell “with the utmost skepticism, to rigorously scrutinize any claims she makes,” according to a letter entered into evidence during the deposition.

International fallout:

  • British police are assessing a report that Andrew Mountbatten-Windsor allegedly shared confidential reports with Epstein during the former prince’s role as UK trade envoy. Mountbatten-Windsor has previously repeatedly denied any wrongdoing over his ties to Epstein. He has not publicly responded to the latest allegations.
  • Separately, the Prince and Princess of Wales said they were “deeply concerned” by revelations from the Epstein files, a spokesperson told journalists in Riyadh ahead of Prince William’s visit to Saudi Arabia.
  • In Norway, former ambassador Mona Juul has been charged with “gross corruption” due to her relationship Epstein, Norway’s crime agency Økokrim said. Her husband, Terje Rød-Larsen, was also charged with complicity in gross corruption.

Prince and Princess of Wales “concerned” over Epstein revelations

Vance hails US-Armenia partnership in first ever vice presidential visit

Armenia's Prime Minister Nikol Pashinyan welcomes US Vice President JD Vance at the President's Residence, in Yerevan, on Monday.

Vice President JD Vance on Monday became the first sitting US vice president (or president) to visit Armenia, where he touted partnerships between the two nations — including US drone technology sales and a civil nuclear cooperation agreement.

“Tonight marks a new beginning for Armenia and the United States and the partnership that our country can have together,” Vance said, standing beside Prime Minister Nikol Pashinyan, whom he endorsed ahead of upcoming elections.

Vance credited President Donald Trump and Pashinyan for advancing a forward-looking vision for peace in the region. Trump hosted the leaders of Armenia and Azerbaijan at the White House in August, where they finalized a peace agreement that would grant the US exclusive development access to a critical transit corridor in the South Caucasus.

Vance praised that Trump Route for International Peace and Prosperity, saying it’ll ensure “private capital is going to flow into building railroads, into building pipelines, again, to building the interconnectedness that would create real prosperity for the region, but also allow the peace agreement to stick.”

Pashinyan, for his part, said he hopes Trump will win the Nobel Peace Prize in 2026 and discussed his role on the Board of Peace, confirming he plans to attend an upcoming meeting.Read more

Maxwell can clear Trump’s name in Epstein probe in exchange for clemency, attorney says

House Oversight Chairman James Comer arrives to speak to reporters after Ghislaine Maxwell's deposition on Capitol Hill Monday.

Ghislaine Maxwell, who was sentenced to prison for 20 years for conspiring with Jeffrey Epstein to abuse minors, sent a clear message to Donald Trump on Monday that if the president were to grant her clemency, she would clear his name of any wrongdoing as it pertains to Epstein.

The extraordinary overture, stated by Maxwell’s lawyer Monday morning during her virtual deposition before the House Oversight Committee, ensures the Epstein saga will continue to remain a political hotspot.

“Ms. Maxwell is prepared to speak fully and honestly if granted clemency by President Trump,” attorney David Oscar Markus said in a statement during the deposition, which he later posted on X. “Only she can provide the complete account. Some may not like what they hear, but the truth matters. For example, both President Trump and President Clinton are innocent of any wrongdoing.”

Markus also said that: “Ms. Maxwell alone can explain why, and the public is entitled to that explanation.”

Trump has not ruled out the possibility of offering Maxwell a pardon or commutation.

Trump and Clinton, who appear throughout the files released by DOJ, have denied any wrongdoing related to Epstein.

House Oversight Chair James Comer called Maxwell’s decision to plead the Fifth “very disappointing” and said lawmakers “had many questions to ask about the crime she and Epstein committed, as well as questions about potential co-conspiracy.”

Democrats on the committee accused Maxwell of trying to buy her clemency by refusing to testify. “We will not allow this silence to stand,” Democratic Rep. Melanie Stansbury said.

When asked if he would subpoena Commerce Secretary Howard Lutnick as part of the probe, Comer said he was going to focus on five depositions he has coming up.

The Clintons are expected to appear behind closed doors later this month for depositions.

gettyimages-2256865224-20260122084850808
4 min read

************______________________________************

What we’re covering here

• President Donald Trump said Friday he is nominating Kevin Warsh to be the next Federal Reserve chair. Warsh will take over from Federal Reserve Chair Jerome Powell, whose term as chair ends in May. The role requires Senate confirmation.

• The announcement caps an extensive search that started in September and was spearheaded by Treasury Secretary Scott Bessent, who whittled down a list of half a dozen candidates and presented four finalists to the president.

• Trump has castigated Powell for months, calling him a “numbskull,” a “moron” and a “jerk” for not lowering interest rates more quickly. His administration also launched a criminal investigation of Powell and the Fed earlier this month, which led Powell to issue an extraordinary rebuke of Trump’s efforts to politicize the independent central bank.

************__________________________************

It’s about to officially become Trump’s economy

President Donald Trump speaks to the media as he walks to Marine One prior to departure from the South Lawn of the White House in Washington, DC, on January 27.

Once President Donald Trump’s handpicked Federal Reserve chair takes up his position at the head of the US economy, the president will have run out of excuses: This will officially become the Trump economy, for better or worse.

Throughout the first year of his second term, Trump has mostly blamed America’s affordability problems on two men: Former President Joe Biden and Fed Chair Jerome Powell, whom he accuses of mismanaging the economy and allowing prices to rise out of control.

But those excuses have fallen flat, with poll after poll showing that voters disapprove of Trump’s handling of the economy.

Once the Fed chair nominee is Senate confirmed, Trump will have claimed the economy for himself. That could be a politically precarious proposition, since the president has almost certainly overpromised on what the new Fed chair will be able to accomplish.

Here’s why.

Trump wants lower mortgage rates. A new Fed chair may not help with that

From Xenix News

President Donald Trump has often said that he wants lower interest rates in order to improve home affordability.

However, the Federal Reserve doesn’t directly set mortgage rates. Those rates largely track the 10-year Treasury yield, which rises and falls for a host of economic reasons.

“The mortgage market is very complex,” said Charlie Dougherty, a senior economist at Wells Fargo. “Yes, the Fed plays a role, but the root cause of mortgage rates being elevated is about inflation, it’s about prospects for growth and fiscal pressures.”

Average mortgage rates have stayed stubbornly just above 6% for the last several months, even after the Fed cut interest rates three consecutive times at the end of 2025.

Trump’s nominee for Fed chair, Kevin Warsh, is known as a “hawk” who supported higher rates during his previous tenure at the Fed. However, even if Warsh cuts the Fed’s benchmark interest rate more than expected, mortgage rates may not move lower.

Wells Fargo expects the 10-year Treasury yield to fall early this year before climbing again in 2027 — a shift that could push mortgage rates higher down the road. Dougherty said Warsh’s nomination doesn’t change the bank’s outlook.Read more

Trump: “We talk about it” but I didn’t ask Warsh to cut rates

US President Donald Trump speaks before signing executive orders in the Oval Office in the White House on Friday.

President Donald Trump on Friday in the Oval Office denied that he directly asked his pick for Federal Reserve chair, Kevin Warsh, to cut interest rates.

“We talk about it, and I’ve been following him, and I don’t want to ask him that question. I think it’s inappropriate, probably,” Trump said. “Probably would be allowed, but I want to keep it nice and pure. But he certainly wants to cut rates. I’ve been watching him for a long time.”

Trump has been publicly shaming current Fed Chair Jerome Powell because the central bank hasn’t lowered rates as quickly or dramatically as the president would like. That’s why some economists have questioned Trump’s pick of Warsh, who has publicly agreed with the president in recent months but has a long record from his prior time at the Fed of pushing for higher interest rates.

Trump said he wasn’t concerned about Warsh’s reputation as an inflation hawk, acknowledging that there have been times when the Fed needed to raise rates.

“Yeah, I’ve had times when I think you’ve had to really have rate hikes too,” Trump said. “But he’s very smart, very good, strong, young – pretty young – and he’s gonna do a good (job).”

798b2e40-6d6e-11f0-b797-07a6cc417af0
4 min read

————————————–*******************———————————————

What we’re covering here

• The Federal Reserve is widely expected to hold its benchmark interest rate steady Wednesday after its first policy meeting of 2026, as the labor market and inflation come into better balance.

• The central bank cut rates three times last year as it monitored the economic effects of President Donald Trump’s aggressive policies. Unemployment ticked up last year and inflation moved slightly lower.

• It’s also the first time we’ll hear from Federal Reserve Chair Jerome Powell after his extraordinary rebuke of the Trump administration. He announced earlier this month that he is under federal investigation, saying the criminal probe is a “pretext” meant to intimidate the central bank into cutting rates to the president’s liking.

• Trump has said his pick for a new Fed chair to replace Powell, whose term ends in May, will slash rates. However, the chair is just one vote on a committee of 12 officials who make policy adjustments based on economic evidence, not political pressure.

————————————–*******************———————————————

Fed holds interest rates steady as its independence comes under threat

From Xenix News

Federal Reserve Chair Jerome Powell during a news conference on September 17, 2025 in Washington, DC.

The Federal Reserve on Wednesday kept interest rates unchanged as the US central bank fights to maintain its ability to set interest rates without political interference.

Officials kept their benchmark lending rate at a range of 3.5-3.75%, following three consecutive rate cuts late last year. Several policymakers have said in recent public speeches they want to see the effects of those rate cuts before considering any further reductions, suggesting a pause could last for a few months.

The Fed’s latest rate decision comes at a pivotal moment in the central bank’s 112-year history, as the Supreme Court reviews a case with significant implications for the Fed’s independence. Chair Jerome Powell himself pushed back against the Trump administration’s threats against the Fed’s independence earlier this month in a stunning video.

Yes, the labor market has weakened. No, that doesn’t guarantee a rate cut

From Xenix News

A job seeker waits to talk to a recruiter at a job fair on August 28, 2025, in Sunrise, Florida.

Outside of recessions, last year was one of the weakest labor markets in decades. Additionally, the latest jobs report from December showed employers hired just 50,000 new workers — the most tepid job growth since December 2020, when employers laid off a net 183,000 workers.

On the surface, that, on top of other recent lackluster labor market data, would appear to make rate cuts a surefire thing for the Federal Reserve, given that it is tasked with setting rates at levels to promote maximum employment. (Generally speaking, lower rates can help boost the labor market by reducing employers’ borrowing costs, thereby freeing up funds to hire more workers.)

But the labor market is only half of the Fed’s responsibility; the other half is price stability (i.e. preventing higher inflation.) Cutting rates too quickly or by too much can help fuel higher inflation, especially at a time when higher tariffs and other factors are driving businesses to raise prices.

With both sides of the equation in mind, economists at Morgan Stanley anticipate the Fed will hold rates steady for longer than they previously forecast.

“Labor demand sill remains soft – with private payrolls rising by only 37k in December and 29k on a three-month moving average – but we think the Fed can live with slower employment growth so long as the unemployment rate is stable (or falling),” they said in a note earlier this month. Their expectation now is that the next rate cut will come in June.

Consumer confidence crisis?

From Xenix News

A customer shops in a supermarket in New York on January 22.

America’s economic mood deteriorated in January to its lowest level in more than a decade as consumers fretted about geopolitical tensions, affordability and President Donald Trump’s unrelenting trade war.

Americans haven’t been in this bad of a mood about the economy since 2014, according to the closely watched Consumer Confidence Index. This month, the index fell 9.7 points to its lowest reading in nearly 12 years.

Put another way: Even in the depths of the 2020 pandemic, consumers were more confident about the economy than they are now, according to the index, which is published by the nonprofit think tank The Conference Board.

To be sure, these sentiment surveys tend to tell us more about what Americans believe than about how they truly are. In recent years, especially, the gap between what consumers say they’re feeling and how they’re actually spending their money has been widening.

So this sour January mood might not translate into less spending. A separate survey from the University of Michigan that emphasizes folks’ views about their personal finances hit a five-month high in January.

That might be why Wall Street was so unbothered by the confidence reading Tuesday. US stocks hit record highs thanks to plenty of optimism about corporate earnings.

5 min read

_____________________________________

Here’s the latest

• Ukraine talks: After meeting with Ukrainian President Volodymyr Zelensky today at the World Economic Forum in Davos, Switzerland, US President Donald Trump said there’s still “a ways to go” on ending Russia’s war. Zelensky noted that documents aimed at stopping the conflict are “nearly ready” and also called out Europe for inaction.

 Greenland deal progress: Trump said negotiations regarding Greenland currently give US “total access” for defense. While Trump and NATO Secretary General Mark Rutte reached a verbal understanding about Greenland yesterday, no document has been produced yet memorializing a future deal, sources say.

• “Board of Peace”: Trump earlier unveiled his “Board of Peace,” which is tasked with rebuilding Gaza and resolving global conflicts, in a signing ceremony attended by fewer than 20 countries. He called Gaza a “beautiful piece of property” when talking about reconstruction of the war-torn strip.Allcatch upgreenlandukrainedavos

_____________________________________

Greenland’s prime minister says sovereignty is a “red line” in any deal

Greenland’s Prime Minister Jens-Frederik Nielsen said Thursday that he wasn’t sure “what’s concrete” in US President Donald Trump’s announced “framework” for a “future deal” on Greenland.

“Nobody else than Greenland and the Kingdom of Denmark have the mandate to make deals or agreements about Greenland and the Kingdom of Denmark without us,” Nielsen told Xenix News Nic Robertson at a press conference in Nuuk.

Trump yesterday announced that he had achieved the new “framework” after a meeting with NATO Secretary-General Mark Rutte. Nielsen said he understood that at that meeting, Rutte “delivered the message that we actually have delivered a couple of days ago with our representative from the government of Greenland.”

“I don’t know what’s concrete in that deal,” Nielsen said of Trump’s new framework, “but I know that we have now a high-level working group working on a solution for both parties.”

Greenland’s sovereignty and territorial integrity is a “red line,” Nielsen continued. Earlier in the press conference, he told reporters that Greenland’s position is clear.

“To summarize, we choose the Kingdom of Denmark,” Nielsen said. “We choose the EU, we choose NATO. This is not only a situation for Greenland and the Kingdom of Denmark, it’s about the world order for all of us.”

Ukraine, US and Russia will hold trilateral meeting in UAE starting Friday, Zelensky says

Ukrainian, US and Russian officials are to hold a trilateral meeting in the United Arab Emirates (UAE), Ukrainian President Volodymyr Zelensky announced Thursday, in a sign that peace talks to end the war in Ukraine are intensifying.

The two-day meeting will take place on Friday and Saturday, the Ukrainian leader said as he delivered a speech at the World Economic Forum in Davos.

Speaking to reporters later, Zelensky revealed that the Ukrainian delegation will include the head and deputy head of his presidential office, Kyrylo Budanov and Serhii Kyslytsia; the head of the parliamentary faction of Zelensky’s Servant of the People party and negotiator, David Arakhamia; and the Chief of the General Staff Andrii Hnatov.

“I asked Hnatov to fly in from Kyiv; the military must be present,” Zelensky told the reporters.

“We are at the moment when, I think, if all the sides will work a lot, we will end this war, but if somebody will play the games, I don’t know who, but I’m just sharing with you. If someone will play games, the war will continue,” he said.

ADVERTISEMENT

Analysis: A strident Zelensky seeks to spur European allies into action

Ukraine's President Volodymyr Zelensky delivers a speech at the Annual Meeting of the World Economic Forum in Davos on Thursday.

This was a very strident broadside by Ukraine’s President Volodymyr Zelensky against European leaders he says have not done enough over the past year. They remain, he said, “in Greenland mode, maybe someone, somewhere will do something.”

Zelensky thanked France and the UK for offering troops in the event of a peace deal, but otherwise tried to stir European leaders – still reeling from US President Donald Trump’s whirlwind of noise around Greenland – into action to forge a new world order. “We need something to replace the old world order with, but where are the leaders to do that?” he said.

Zelensky revealed plans for US, Russian and Ukrainian leaders to meet in the United Arab Emirates in the coming days, for what would mark the first trilateral meeting since Russia’s full-scale invasion of Ukraine. Trump had floated such an idea late last year – and Russia rejected it. That it is now likely happening might suggest some progress in peace talks, if only on the procedural front.

The speech’s tone – defiant against a part of Europe that has been Zelensky’s key support base – was designed to appeal to the White House. Parts of it would have pleased both US Vice-President JD Vance and Trump himself. But it was also designed to use the embarrassment and vertigo of the Greenland crisis to urge sedentary European leaders into real action.

Zelensky was complimentary about how Trump’s snatching of Venezuela’s former president Nicolas Maduro led to him facing trial in New York. But he reminded Europeans that Russia’s President Vladimir Putin did not face a similar fate, and that the people of Iran had been left to face the brutality of their security forces. He danced around the issue of US weapons supplies, saying he had discussed air defenses with Trump, but that he had been advised not to mention the US Tomahawk missiles Ukraine urgently wants.

Zelensky wanted to leave a mark on his European hosts that Trump would appreciate and convey the idea that the peace process has momentum, saying the documents were “almost ready.”

The answer to the key question of whether Putin will sign up to them likely leans towards the negative.

No written document has been produced on future deal framework for Greenland, sources say

US President Donald Trump, right, meets with NATO Secretary General Mark Rutte during a meeting on the sidelines of the Annual Meeting of the World Economic Forum in Davos, Switzerland, on Wednesday.

President Donald Trump and NATO Secretary General Mark Rutte reached a verbal understanding about Greenland during their meeting yesterday, but no document has been produced yet memorializing a future deal, people familiar with their discussion told Xenix News.

Trump and Rutte agreed to further discussions about updating a 1951 agreement between the US, Denmark and Greenland that governs the US military’s presence on the island, the sources said. The deal framework also guarantees that Russia and China will be barred from any investments in Greenland and lays out an enhanced role for NATO in Greenland, they said.

Two sources said another element of a possible deal is increased US access to Greenland’s natural resources. Rutte on Thursday denied that he had discussed this issue with Trump directly.

One person familiar with the discussions said Rutte did not want any formal documents prepared during his meeting with Trump because he was concerned they could leak — or be posted by Trump himself on social media. Trump earlier this week posted a private message Rutte sent to him ahead of their talks.

The lack of any written documentation has caused some confusion among NATO allies about what was actually agreed upon.

XenixNews was the first to pinpoint significant advancements in the multi-state investigation.

Federal authorities are ramping up their quest for information following a shooting that involved a member of the District of Columbia National Guard, leading to a wide-ranging inquiry stretching from Washington, DC to cities along the West Coast. Recently uncovered information, examined by XenixNews, provides an initial glimpse into the suspect involved in the case—though authorities warn that numerous details are still being investigated and are subject to change.

Officials state that the gunfire, which took place during a tumultuous incident late last week, caused various agencies to rush to coordinate across different jurisdictions. The case has quickly expanded in scope, with federal law enforcement, military investigators, and state officials collaborating to reconstruct the events preceding the gunfire.

XenixNews has communicated with federal sources, examined initial records, and collected early remarks to comprehend what investigators think at this stage.

An Expanding Nationwide Inquiry

Federal officials report that the suspect—whose name has not been officially disclosed—was already known to investigators because of previous encounters with law enforcement. Officials stress that the specifics of those interactions are still under scrutiny, and no definitive conclusions have been reached regarding their significance to the ongoing case.

A senior federal investigator characterized the investigation as “dynamic, complex, and not yet finished,” informing XenixNews that teams on each coast are currently tracking the suspect’s travel history, online presence, and communication habits.

Q: Are detectives considering this a deliberate assault?

A: “It’s premature to determine the motive,” the official stated. “We are gathering information from several states.” “Nothing is excluded, and nothing is validated.”

As officials attempt to piece together the suspect’s recent activities, forensic experts are examining ballistic evidence, surveillance videos, and vehicle information that could clarify the events just prior to the shooting.

Military officials state that the participation of a National Guard member has increased complexity, necessitating both civilian and military investigative pathways.

  • Who Is the Accused? Initial Signs and Their Significance

XenixNews’ examination of records reveals that the suspect has resided in various states throughout the last ten years, frequently traveling between the East Coast and the Pacific area. Investigators are looking into whether the suspect’s movements are connected to their job, familial relationships, or something more worrisome.

A law enforcement analyst knowledgeable about the case indicates that investigators are examining if the suspect had any prior interactions with military personnel, including the National Guard soldier who was wounded in the shooting.

Q: Is there any record of criminal activity for the suspect?

A federal source clarified, “We are analyzing previous incidents, but no conclusive information can be provided at this time.” “It’s essential not to leap ahead of the facts.”

XenixNews has verified that the suspect’s most recent address was in a mixed-use area on the outskirts of Seattle, where federal agents have recently interviewed people who might have interacted with the suspect.

Residents characterized the person as “reserved” and “generally private,” although one neighbor mentioned “indicators of erratic behavior” in the past few months. These claims, though, are based on personal accounts and have not been verified by law enforcement.

Investigators Pursue Financial, Digital, and Travel Clues

Federal authorities inform XenixNews that three significant investigative avenues are currently taking precedence:

  • Sure, please provide the text that you would like me to paraphrase. Monetary Operations

Investigators are examining recent bank withdrawals, online transactions, and travel costs to assess if the suspect arranged any actions prior to the shooting.

  • Sure, please provide the text you’d like me to paraphrase. Digital Trace

Devices found at the location are being examined forensically. The suspect’s internet behavior might assist investigators in identifying possible stress factors or links prior to the event.

3. Coast-to-Coast Journey Schedule

Agents are tracking the suspect’s movements over the last six months to determine how and when the suspect reached Washington, DC.

An investigator referred to the travel pattern as “strange” but chose not to provide further details.

Response of the National Guard and Internal Evaluation

The DC National Guard has initiated an internal review, concentrating on safety measures, member awareness, and communication methods. Although the Guard is not engaged in criminal investigations, officials state they are fully cooperating with federal authorities.

A representative stressed that the event, although highly troubling, does not indicate any wider security problem within Guard activities.

Guard leadership plans to provide a preliminary internal report later this month.

Political and Public Response Escalates

Legislators from both parties have voiced worries regarding the shooting, calling on federal officials to share updates while protecting the integrity of the investigation.

Advocates for public safety argue that the event highlights the requirement for more defined policies regarding military personnel working in civilian settings, particularly during times of increased political tension in the capital.

Civil rights groups have likewise urged for openness in disclosing information about the suspect, cautioning against public conjecture until official conclusions are verified.

What Follows Next?

  • Federal authorities indicate that the inquiry is expected to broaden more before focusing. Several states could potentially issue subpoenas while digital and travel evidence is being analyzed.
  • Authorities are urging the public not to jump to conclusions based on initial information and to wait for official updates as evidence is confirmed.
  • A high-ranking DOJ representative summarized the circumstances to XenixNews:
  • “We are just starting to comprehend this case.” Not the conclusion. Numerous inquiries persist, and the probe will pursue the evidence in whichever direction it points—along either coastline.
  • At this time, officials maintain their collaborative actions, aiming to provide insight into an event that has generated pressing inquiries regarding public safety, military participation, and the suspect’s journey prior to the shooting.