awaiting Senate confirmation, is the latest economic test that he has had to contend with during his tenure.

Mr. Powell, 69, began his first four years as Fed chair in early 2018. By that Christmas, the central bank’s campaign of steady rate increases intended to fend off inflation had collided with President Donald J. Trump’s trade war to send markets plummeting.

In 2019, Mr. Trump publicly pushed for lower rates and accosted Mr. Powell — whom the president had chosen to lead the central bank — in interviews and on Twitter, calling him a “bonehead,” an “enemy” and a golfer who could not putt.

Then came the onset of the pandemic in 2020, and Mr. Powell and his colleagues crossed red lines and upended norms to rescue markets and the economy. They averted a financial crisis, but 2021 brought with it a new challenge: rapid inflation.

Now, critics are questioning whether the monetary help that Mr. Powell’s Fed unleashed to protect the pandemic-stricken economy — lowering rates to near zero and buying trillions of dollars in government bonds — combined with huge fiscal stimulus to supercharge demand and release an inflationary genie that could prove hard to trap.

The Fed has already begun removing some of that support, stopping bond purchases and communicating plans to raise interest rates by a quarter-point this month and steadily throughout the rest of the year. Mortgage rates have already begun climbing in anticipation of those actions.

wanted to see full employment return before paring back its support, has been too slow to react to changing conditions.

This moment “represents a decade of economic experience in the late 1960s and 1970s, compressed into a year,” said Lawrence H. Summers, a former Treasury secretary who spent last year warning that inflation was going to take off as the government overstimulated the economy.

“The question is: Is this the Fed’s Paul Volcker moment, or is this the Fed’s Arthur Burns moment?” he said.

Mr. Burns preceded Mr. Volcker as Fed chair and was late to react to fast inflation, afraid of slowing the job market and hurting Republicans politically. Mr. Summers warned that so far, today’s situation looked more Burns than Volcker, because the Fed spent 2021 only slowly adjusting to the reality of inflation and is now planning to only steadily adjust policy.

While White House and Fed officials had expected inflation to fade last year, optimistically labeling it “transitory,” their hopes were foiled as rapid consumer demand for couches, cars and other goods collided with pandemic-constrained supply chains. Price gains accelerated rather than slowing down.

“Transitory” has now become a dirty word in policymaking circles. Though officials continue to predict that inflation will moderate, they acknowledge more clearly how uncertain that is.

“We have never put our economy into a deep freeze and then defrosted it before,” said Megan Greene, a senior fellow at a Harvard Kennedy School center and chief global economist for the Kroll Institute. “And we haven’t had a war in continental Europe for a while.”

in Shanghai and Shenzhen, China, a major technology manufacturing hub and port city, are boosting the risk that supply chains remain roiled in the coming months. Those shocks from outside come when price pressures have already begun broadening to categories like rent, another development that could make inflation last.

It is not clear whether those factors will keep inflation drastically higher, but Fed officials will be watching warily.

If the Fed has to raise interest rates to painful levels to cool off the economy and put a lid on prices, it could send financial markets tumbling, erasing stock and housing wealth. It could also slow wage increases and throw people out of jobs as companies retrench, curtailing investment and hiring.

But Fed inaction — or under-action — would also carry risks. High prices that chip away at consumer buying power year after year would make it hard for families and businesses to plan for the future. They could especially hurt people who are out of work and living on savings, or the poor, who devote a big chunk of their budgets to necessities and have less room to cut back if costs get out of control.

Mr. Volcker, Mr. Powell’s long-ago predecessor, one of his professional idols and — potentially, if things go wrong — his muse, died in 2019. But he had thoughts on the trade-off.

Maintaining confidence that a dollar will be able to buy tomorrow what it can today “is a fundamental responsibility of monetary policy,” Mr. Volcker wrote in his 2018 memoir. “Once lost, the consequences can be severe and stability hard to restore.”

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Ukraine Live Updates: Russian Airstrikes Kill at Least 35 at Base Near Polish Border

WASHINGTON — Russia asked China to give it military equipment and support for the war in Ukraine after President Vladimir V. Putin began a full-scale invasion last month, according to U.S. officials.

Russia has also asked China for additional economic assistance, to help counteract the battering its economy has taken from broad sanctions imposed by the United States and European and Asian nations, according to an official.

American officials, determined to keep secret their means of collecting the intelligence on Russia’s requests, declined to describe further the kind of military weapons or aid that Moscow is seeking. The officials also declined to discuss any reaction by China to the requests.

President Xi Jinping of China has strengthened a partnership with Mr. Putin and has stood by him as Russia has stepped up its military campaign, destroying cities in Ukraine and killing hundreds or thousands of civilians. American officials are watching China closely to see whether it will act on any requests of aid from Russia. Jake Sullivan, the White House national security adviser, is scheduled to meet on Monday in Rome with Yang Jiechi, a member of the Chinese Communist Party’s elite Politburo and director of the party’s Central Foreign Affairs Commission.

Mr. Sullivan intends to warn Mr. Yang about any future Chinese efforts to bolster Russia in its war or undercut Ukraine, the United States and their partners.

“We are communicating directly, privately to Beijing that there will absolutely be consequences for large-scale sanctions evasion efforts or support to Russia to backfill them,” Mr. Sullivan said on CNN on Sunday.

“We will not allow that to go forward and allow there to be a lifeline to Russia from these economic sanctions from any country anywhere in the world,” he said.

Mr. Sullivan did not make any explicit mention of potential military support from China, but other U.S. officials spoke about the request from Russia on the condition of anonymity because of the sensitivity of diplomatic and intelligence matters.

Liu Pengyu, a spokesman for the Chinese Embassy in Washington, said he had never heard of the request from Russia. “The current situation in Ukraine is indeed disconcerting,” he said, adding that Beijing wants to see a peaceful settlement. “The high priority now is to prevent the tense situation from escalating or even getting out of control.”

The Biden administration is seeking to lay out for China the consequences of its alignment with Russia and penalties it will incur if it continues or increases its support. Some U.S. officials argue it might be possible to dissuade Beijing from ramping up its assistance to Moscow. Chinese leaders may be content to offer rhetorical support for Moscow and may not want to further enmesh themselves with Mr. Putin by providing military support for the war, those U.S. officials say.

Mr. Sullivan said China “was aware before the invasion took place that Vladimir Putin was planning something,” but added that the Chinese might not have known the full extent of the Russian leader’s plans. “It’s very possible that Putin lied to them, the same way he lied to Europeans and others,” he said.

Mr. Xi has met with Mr. Putin 38 times as national leaders, more than with any other head of state, and the two share a drive to weaken American power.

Traditionally, China has bought military equipment from Russia rather than the other way around. Russia has increased its sales of weaponry to China in recent years. But China has advanced missile and drone capabilities that Russia could use in its Ukraine campaign.

Although Russia on Sunday launched a missile barrage on a military training ground in western Ukraine that killed at least 35 people, there has been some evidence that Russian missile supplies have been running low, according to independent analysts.

Last week, the White House criticized China for helping spread Kremlin disinformation about the United States and Ukraine. In recent days, Chinese diplomats, state media organizations and government agencies have used a range of platforms and official social media accounts to amplify a conspiracy theory that says the Pentagon has been financing biological and chemical weapons labs in Ukraine. Right-wing political figures in the United States have also promoted the theory.

On Friday, Russia called a United Nations Security Council meeting to present its claims about the labs, and the Chinese ambassador to the U.N., Zhang Jun, supported his Russian counterpart.

“Now that Russia has made these false claims, and China has seemingly endorsed this propaganda, we should all be on the lookout for Russia to possibly use chemical or biological weapons in Ukraine, or to create a false flag operation using them,” Jen Psaki, the White House press secretary, wrote on Twitter last Wednesday.

China is also involved in the Iran nuclear negotiations, which have stalled because of new demands from Russia on relief from the sanctions imposed by Western nations in response to the Ukraine war.

American officials are trying to determine to what degree China would support Russia’s position in those talks. Before Russia raised the requests, officials from the nations involved had been close to clinching a return to a version of the Obama-era nuclear limits agreement from which Donald J. Trump withdrew, Mr. Sullivan might bring up Iran with Mr. Yang on Monday.

Current and former U.S. officials say the Rome meeting is important given the lives at stake in the Ukraine war and the possibility of Russia and China presenting a geopolitical united front against the United States and its allies in the years ahead.

“This meeting is critical and possibly a defining moment in the relationship,” said Evan Medeiros, a Georgetown University professor who was a senior Asia director on the National Security Council during the Obama administration.

“I think what the U.S. is probably going to do is lay out the costs and consequences of China’s complicity and possible enabling of Russia’s invasion,” he said. “I don’t think anyone in the administration has illusions that the U.S. can pull China away from Russia.”

Some U.S. officials are looking for ways to compel Mr. Xi to distance himself from Mr. Putin on the war. Others see Mr. Xi as a lost cause and prefer to treat China and Russia as committed partners, hoping that might galvanize policies and coordination among Asian and European allies to contain them both.

Chinese officials have consistently voiced sympathy for Russia during the Ukraine war by reiterating Mr. Putin’s criticism of NATO and blaming the United States for starting the conflict. They have refrained from any mention of a Russian “war” or “invasion,” even as they express general concern for the humanitarian crisis.

They mention support for “sovereignty and territorial integrity,” a common catchphrase in Chinese diplomacy, but do not say explicitly which nation’s sovereignty they support — meaning the phrase could be interpreted as backing for Ukraine or an endorsement of Mr. Putin’s claims to restoring the territory of imperial Russia.

China and Russia issued a 5,000-word statement on Feb. 4 saying their partnership had “no limits” when Mr. Putin met with Mr. Xi before the opening ceremony of the Winter Olympics in Beijing. Around that time, senior Chinese officials asked senior Russian officials not to invade Ukraine before the end of the Games, according to U.S. and European officials who cite a Western intelligence report.

Starting last November, American officials quietly held talks with Chinese officials, including the ambassador in Washington and the foreign minister, to discuss intelligence showing Mr. Putin’s troop buildup to persuade the Chinese to tell the Russians not to launch a war, U.S. officials said. The Chinese officials rebuffed the Americans at every meeting and expressed skepticism that Mr. Putin intended to invade Ukraine, the U.S. officials said.

William J. Burns, the C.I.A. director, said Thursday in a Senate hearing that he believed Mr. Xi was “unsettled” by the Ukraine war.

Last Tuesday, Mr. Xi repeated China’s standard talking points on the war in a video call with the leaders of France and Germany. He also said that all nations should show “maximum restraint” and that China was “deeply grieved by the outbreak of war again on the European continent,” according to a Chinese readout. He did not say Russia had started the fighting.

U.S. and European officials say large Chinese companies will most likely refrain from openly violating sanctions on Russia for fear of jeopardizing their global commerce. On Thursday, some Russian news articles and commentary questioned China’s commitment to Russia after news agencies reported that China was refusing to send aircraft parts to the country.

Russia, as U.S. officials often remind the public, has relatively few friends or allies. And officials have said Russia’s outreach to its partners is a sign of the difficulties it is encountering trying to subdue Ukraine.

As the United States and Europe have increased pressure and sanctions, Moscow has sought more aid.

In the buildup to war, Russia got assistance from Belarus, using its territory to launch part of the invasion. Minsk has also tried to help Moscow evade sanctions. Those actions prompted the European Union to impose sanctions on Belarus. The penalties would limit money flowing into Belarus from Europe and block some Belarusian banks from using the SWIFT financial messaging system.

Michael Carpenter, the U.S. ambassador to the Organization for Security and Cooperation in Europe, accused Belarus of being a “co-aggressor” and having “stabbed your neighbor in the back,” referring to Ukraine.

President Aleksandr G. Lukashenko of Belarus has said his military will not join in the war. But Russia has launched missiles from Belarus and evacuated some injured Russian soldiers to hospitals in that country.

President Bashar al-Assad of Syria, who owes his government’s survival to Russian intervention in the Syrian civil war, also declared support for Moscow’s invasion. Russia has tried to recruit Syrian fighters to join the Ukraine war, according to the Pentagon.

While there are no details of how many recruits Moscow has enlisted or if they have arrived in Ukraine, American officials said it was an indicator of the strategic and tactical problems that have plagued Russian commanders.

Before the start of the war, European officials said, Russian military contractors with experience fighting in Syria and Libya secretly entered eastern Ukraine to help lay the groundwork for the invasion.

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Trump’s Truth Social Is Poised to Join a Crowded Field

For months, former President Donald J. Trump has promoted Truth Social, the soon-to-be-released flagship app of his fledging social media company, as a platform where free speech can thrive without the constraints imposed by Big Tech.

At least seven other social media companies have promised to do the same.

Gettr, a right-wing alternative to Twitter founded last year by a former adviser to Mr. Trump, bills itself as a haven from censorship. That’s similar to Parler — essentially another Twitter clone backed by Rebekah Mercer, a big donor to the Republican Party. MeWe and CloutHub are similar to Facebook, but with the pitch that they promote speech without restraint.

Truth Social was supposed to go live on Presidents’ Day, but the start date was recently pushed to March, though a limited test version was unveiled recently. A full rollout could be hampered by a regulatory investigation into a proposed merger of its parent company, the Trump Media & Technology Group, with a publicly traded blank-check company.

If and when it does open its doors, Mr. Trump’s app will be the newest — and most conspicuous — entrant in the tightly packed universe of social media companies that have cropped up in recent years, promising to build a parallel internet after Twitter, Facebook, Google and other mainstream platforms began to crack down on hate speech.

211 million daily active users on Twitter who see ads.

Many people who claim to crave a social network that caters to their political cause often aren’t ready to abandon Twitter or Facebook, said Weiai Xu, an assistant professor of communications at the University of Massachusetts-Amherst. So the big platforms remain important vehicles for “partisan users” to get their messages out, Mr. Xu said.

Gettr, Parler and Rumble have relied on Twitter to announce the signing of a new right-wing personality or influencer. Parler, for instance, used Twitter to post a link to an announcement that Melania Trump, the former first lady, was making its platform her “social media home.”

Alternative social media companies mainly thrive off politics, said Mark Weinstein, the founder of MeWe, a platform with 20 million registered users that has positioned itself as an option to Facebook.

certain subscription services. His start-up has raised $24 million from 100 investors.

But since political causes drive the most engagement for alternative social media, most other platforms are quick to embrace such opportunities. This month, CloutHub, which has just four million registered users, said its platform could be used to raise money for the protesting truckers of Ottawa.

Mr. Trump wasn’t far behind. “Facebook and Big Tech are seeking to destroy the Freedom Convoy of Truckers,” he said in a statement. (Meta, the parent company of Facebook, said it removed several groups associated with the convoy for violating their rules.)

Trump Media, Mr. Trump added, would let the truckers “communicate freely on Truth Social when we launch — coming very soon!”

Of all the alt-tech sites, Mr. Trump’s venture may have the best chance of success if it launches, not just because of the former president’s star power but also because of its financial heft. In September, Trump Media agreed to merge with Digital World Acquisition, a blank-check or special purpose acquisition company that raised $300 million. The two entities have raised $1 billion from 36 investors in a private placement.

But none of that money can be tapped until regulators wrap up their inquiry into whether Digital World flouted securities regulations in planning its merger with Trump Media. In the meantime, Trump Media, currently valued at more than $10 billion based on Digital World’s stock price, is trying to hire people to build its platform.

Trump supporter, and the venture fund of Mr. Thiel’s protégé J.D. Vance, who is running for a Senate seat from Ohio.

Rumble is also planning to go public through a merger with a special-purpose acquisition company. SPACs are shell companies created solely for the purpose of merging with an operating entity. The deal, arranged by the Wall Street firm Cantor Fitzgerald, will give Rumble $400 million in cash and a $2.1 billion valuation.

The site said in January that it had 39 million monthly active users, up from two million two years ago. It has struck various content deals, including one to provide video and streaming services to Truth Social. Representatives for Rumble did not respond to requests for comment.

removed it from their app stores and Amazon cut off web services after the riot, according to SensorTower, a digital analytics company.

John Matze, one of its founders, from his position as chief executive. Mr. Matze has said he was dismissed after a dispute with Ms. Mercer — the daughter of a wealthy hedge fund executive who is Parler’s main backer — over how to deal with extreme content posted on the platform.

Christina Cravens, a spokeswoman for Parler, said the company had always “prohibited violent and inciting content” and had invested in “content moderation best practices.”

Moderating content will also be a challenge for Truth Social, whose main star, Mr. Trump, has not been able to post messages since early 2021, when Twitter and Facebook kicked him off their platforms for inciting violence tied to the outcome of the 2020 presidential election.

With Mr. Trump as its main poster, it was unclear if Truth Social would grow past subscribers who sign up simply to read the former president’s missives, Mr. Matze said.

“Trump is building a community that will fight for something or whatever he stands for that day,” he said. “This is not social media for friends and family to share pictures.”

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Ukraine Live Updates: U.S. and NATO See No Immediate Sign of a Russian Military Drawdown

michael barbaro

From The New York Times, I’m Michael Barbaro. This is The Daily.

[music]

Today: Russia is making preparations for what many fear may be a full-scale invasion of Ukraine, prompting warnings from the U.S. of serious consequences if it does. I spoke to my colleague, Moscow bureau chief Anton Troianovski, about what Vladimir Putin wants from Ukraine and just how far he may go to get it.

It’s Wednesday, December 8.

Anton, describe the scene right now on the border between Ukraine and Russia. What does it look like? What exactly is happening there?

anton troianovski

Well, what you’re seeing on the Russian side of the border within 100 to 200 miles away is that thousands of Russian troops are on the move.

archived recording 1

A top military official says intelligence shows nearly 100,000 Russian troops —

archived recording 2

Russian troops have massed on the border of Ukraine.

archived recording 3

— troops on the border with Ukraine. And that’s prompted fears of an invasion early next year.

anton troianovski

We’re seeing a lot of social media footage of tanks and other military equipment on the move, on trains, in some cases, heading west toward the Ukraine border area from as far away as Siberia.

archived recording

Tensions between Russia and Ukraine have been building for some time in the wake of —

anton troianovski

These satellite images that we’re seeing show deployment areas around Ukraine that were empty as recently as June that are now full of military equipment-like tanks and armored personnel carriers.

archived recording

The U.S. called it unusual activity.

anton troianovski

And obviously, Russia moves its forces all the time. It does big military exercises, snap military exercises all the time, but what we’re being told is that these military movements are very unusual. Some of them are happening at night and, in other ways, seemingly designed to obfuscate where various units are going. And experts are saying we’re also seeing things like logistics and medical equipment being moved around, stuff that you really would see if there were real preparations being made for large-scale military action.

michael barbaro

So what’s happening in Russia is not just the movement of the troops that would perhaps carry out an invasion, but the kind of military personnel and equipment that would be required to deal with the repercussions of something like invading Ukraine?

anton troianovski

Yes. So American intelligence officials are seeing intelligence that shows Russia preparing for a military offensive involving an estimated 175,000 troops —

michael barbaro

Wow.

anton troianovski

— as soon as early next year.

michael barbaro

And Anton, is Ukraine preparing for what certainly looks, from what you just described, as a potential invasion?

anton troianovski

They’re in a really tough spot because no matter how much they prepare, their military would be utterly outgunned and outmatched. Ukraine doesn’t have the missile defense and air defense systems that could prevent a huge shock-and-awe campaign at the beginning of Russian military action.

They also don’t know, if and when an attack comes, which direction it might come from, because Russia could attack from any of three directions. So we’re not seeing a big mobilization in Ukraine right now, but our reporting on the ground there does show a grim and determined mood among the military. The soldiers on the border have made it clear that if it comes to it, they will be prepared to do what they can to make this as costly as possible for the other side.

michael barbaro

So I guess the question everyone has in this moment is why would Putin want to invade Ukraine right now and touch off what would no doubt be a major conflict, one in which, as you just said, Russia would have many advantages, but would nevertheless end up probably being a very deadly conflict?

anton troianovski

So obviously, we don’t yet know whether Putin has made the decision to invade. He’s clearly signaling he’s prepared to use military force. What we do know is that he has been extraordinarily fixated on the issue of Ukraine for years. But I think to really understand it, you have to look at three dates over the last 30 years that really show us why Ukraine matters so much to Putin.

michael barbaro

OK. So what’s the first date?

anton troianovski

The first one, 1991, almost exactly 30 years ago, the Soviet Union breaks up, and Ukraine becomes an independent country. For people of Putin’s generation, this was an incredibly shocking and even traumatic moment. Not only did they see and experience the collapse of an empire, of the country that they grew up in, that they worked in, that, in Putin’s case, the former K.G.B. officer that they served. But there was also a specific trauma of Ukraine breaking away. Ukraine, of all the former Soviet republics, was probably the one most valuable to Moscow.

It was a matter of history and identity with, in many ways, Russian statehood originating out of the medieval Kiev Rus civilization. There’s the matter of culture with so many Russian language writers like Gogol and Bulgakov coming from Ukraine. There was the matter of economics with Ukraine being an industrial and agricultural powerhouse during the Soviet Union, with many of the planes and missiles that the Soviets were most proud of coming from Ukraine.

michael barbaro

So there’s a sense that Ukraine is the cradle of Russian civilization, and to lose it is to lose a part of Russia itself.

anton troianovski

Yeah. And it’s a country of tens of millions of people that is also sandwiched between modern-day Russia and Western Europe. So the other issue is geopolitical, that Ukraine in that sort of Cold War security, East-versus-West mindset, Ukraine was a buffer between Moscow and the West. So 1991 was the year when that all fell apart.

And then by the time that Putin comes to power 10 years later, he’s already clearly thinking about how to reestablish Russian influence in that former Soviet space in Eastern Europe and in Ukraine in particular. We saw a lot of resources go in economically to try to bind Ukraine to Russia, whether it’s discounts on natural gas or other efforts by Russian companies, efforts to build ties to politicians and oligarchs in Ukraine. Really, a multipronged effort by Putin and the Kremlin to really gain as much influence as possible in that former Soviet space that they saw as being so key to Russia’s economic and security interests.

michael barbaro

Got it.

anton troianovski

And then fast forward to the second key date, 2014, which is the year it became clear that that strategy had failed.

archived recording

Now, to the growing unrest in Ukraine and the violent clashes between riot police and protesters.

michael barbaro

And why did that strategy fail in 2014?

anton troianovski

That was the year that Ukraine had its — what’s called its Maidan Revolution.

archived recording 1

The situation in Kiev has been very tense.

archived recording 2

Downtown Kiev has been turned into a charred battlefield following two straight nights of rioting.

anton troianovski

It’s a pro-Western revolution —

archived recording

They want nothing short of revolution, a new government and a new president.

anton troianovski

— that drove out a Russia-friendly president, that ushered in a pro-Western government, that made it its mission to reduce Ukraine’s ties with Russia and build its ties with the West.

archived recording

Ukrainians who want closer ties with the West are once again back in their thousands on Independence Square here in Kiev. They believe they —

michael barbaro

Hmm. And what was Putin’s response to that?

anton troianovski

Well, Putin didn’t even see it as a revolution. He saw it as a coup engineered by the C.I.A. and other Western intelligence agencies meant to drive Ukraine away from Russia. And —

archived recording

With stealth and mystery, Vladimir Putin made his move in Ukraine.

anton troianovski

— he used his military.

archived recording

At dawn, bands of armed men appeared at the two main airports in Crimea and seized control.

anton troianovski

He sent troops into Crimea, the Ukrainian Peninsula in the Black Sea that’s so dear to people across the former Soviet Union as kind of the warmest, most tropical place in a very cold part of the world.

archived recording

Tonight, Russian troops — hundreds, perhaps as many as 2,000, ferried in transport planes — have landed at the airports.

anton troianovski

He fomented a separatist war in Eastern Ukraine that by now has taken more than 10,000 lives and armed and backed pro-Russian separatists in that region. So that was the year 2014 when Russia’s earlier efforts to try to bind Ukraine to Moscow failed and when Russia started taking a much harder line.

michael barbaro

And this feels like a very pivotal moment because it shows Putin’s willingness to deploy the Russian military to strengthen the ties between Russia and Ukraine.

anton troianovski

Absolutely. Strengthened the ties or you can also say his efforts to enforce a Russian sphere of influence by military force. And it’s also the start of what we’ve been seeing ever since, which is Putin making it clear that he is willing to escalate, he is willing to raise the stakes and that he essentially cares more about the fate of Ukraine than the West does.

And that brings us to the third date I wanted to talk about, which is early this year, 2021, when we saw the President of Ukraine, Volodymyr Zelensky, really start taking a more aggressive anti-Russian and pro-Western tack. He cracked down on a pro-Russian oligarch and pro-Russian media. He continued with military exercises with American soldiers and with other Western forces.

He kept talking up the idea of Ukraine joining NATO. That’s the North Atlantic Treaty Organization, the Western military alliance. And in a sense, this is what Putin seems to fear the most, the idea of NATO becoming more entrenched in this region. So Putin made it clear that this was starting to cross what he describes as Russia’s red lines and that Russia was willing to take action to stop this.

michael barbaro

So to put this all together and understand why Putin is doing what he’s doing when it comes to Ukraine, we have as a backdrop here this fixation with Ukraine for historic, political, economic and cultural reasons. And what’s new and urgent here for Putin is his belief that Ukraine is on the verge of a major break with Russia and toward the West — in particular, a military alliance, NATO — and that he cannot tolerate. And so that brings us up to now and this very imminent and scary threat of a Russian invasion.

anton troianovski

That’s right, Michael. I spoke to a former advisor of Putin’s recently who described Ukraine as a trauma within a trauma for the Kremlin — so the trauma of the breakup of the Soviet Union plus the trauma of losing Ukraine specifically for all those reasons you mentioned. And the thing is it’s true.

Russia is losing Ukraine. I think objectively, though, you have to say it’s losing Ukraine in large part because of Putin’s policies, because of the aggressive actions he’s taken. And if you look at the polls before 2014, something like 12 percent of Ukrainians wanted to join NATO. Now, it’s more than half.

michael barbaro

Wow.

anton troianovski

So you put all that together, Ukraine is indeed drifting toward the West. It does seem like Putin feels like he’s running out of time to stop this and that he’s willing to escalate, he’s willing to raise the stakes, to keep Ukraine out of the West. And what we’re seeing right now on the border is all that playing out.

[music]
michael barbaro

We’ll be right back.

So Anton, the question right now is will President Putin actually carry out an invasion of Ukraine? And how should we be thinking about that?

anton troianovski

Well, it’s quite perilous, of course, to try to get inside Putin’s head, but here’s the case for invading now. Number one: NATO and the United States have made it clear that they are not going to come to Ukraine’s defense, because Ukraine is not a member of the NATO alliance, and NATO’s mutual defense pact only extends to full-fledged members. And of course, I think, politically, Putin believes that neither in the U.S., nor in Western Europe, is there the will to see soldiers from those countries die fighting for Ukraine.

michael barbaro

Right. And President Biden has just very publicly pulled the United States out of the war in Afghanistan and more or less communicated that unless American national security interests are at play, he will not be dispatching troops anywhere.

anton troianovski

Exactly. So Putin saw that, and he sees that potentially things could change. If the West does have more of a military presence in Ukraine in the future, let alone if Ukraine were to become a member of NATO at some point — it’s not going to happen in the next few years, but perhaps at some point — then attacking Ukraine becomes a much more costly proposition. So it’s a matter of war now could be less costly to Russia than war later.

michael barbaro

Right. The geopolitics of this moment may work in favor of him doing it in a way that it might not in a year or two or three.

anton troianovski

Absolutely. And then there’s a couple of other reasons. There’s the fact that if we look at everything Putin has said and written over the last year, he really seems convinced that the West is pulling Ukraine away from Russia against the will of much of the Ukrainian people. Polling doesn’t really bear that out, but Putin really seems to be convinced of that. And so it seems like he may also be thinking that Ukrainians would welcome Russian forces as liberators from some kind of Western occupation.

And then third, there’s the economy. The West has already threatened severe sanctions against Russia were it to go ahead with military action, but Russia has been essentially sanctions-proofing its economy since at least 2014, which is when it took control of Crimea and was hit by all these sanctions from the U.S. and from the E.U. So Russia’s economy is still tied to the West.

It imports a lot of stuff from the West. But in many key areas, whether it’s technology or energy extraction or agriculture, Russia is becoming more self-sufficient. And it is building ties to other parts of the world — like China, India, et cetera — that could allow it to diversify and have basically an economic base even if an invasion leads to a major crisis in its financial and economic relationship with the West.

michael barbaro

Right. So this is the argument that Putin can live with the costs of the world reacting very negatively to this invasion?

anton troianovski

Exactly.

michael barbaro

OK. And what are the reasons why an invasion of Ukraine might not happen? What would be the case against it, if you were Vladimir Putin?

anton troianovski

Well, I mean, I have to say, talking to analysts, especially here in Russia, people are very skeptical that Putin would go ahead with an invasion. They point out that he is a careful tactician and that he doesn’t like making moves that are irreversible or that could have unpredictable consequences.

So if we even look at the military action he’s taken recently, the annexation of Crimea, there wasn’t a single shot fired in that. That was a very quick special-forces-type operation. What we’re talking about here, an invasion of Ukraine, would be just a massive escalation from anything Putin has done so far. We are talking about the biggest land war in Europe since World War II, most likely. And it would have all kinds of unpredictable consequences.

There’s also the domestic situation to keep in mind. Putin does still have approval ratings above 60 percent, but things are a bit shaky here, especially with Covid. And some analysts say that Putin wouldn’t want to usher in the kind of domestic unpredictability that could start with a major war with young men coming back in body bags.

And then finally, looking at Putin’s strategy and everything that he’s said, for all we know, he doesn’t really want to annex Ukraine. He wants influence over Ukraine. And the way he thinks he can do that is through negotiations with the United States.

And that’s where the last key point here comes in, which is Putin’s real conviction that it’s the U.S. pulling the strings here and that he can accomplish his goals by getting President Biden to sit down with him and hammering out a deal about the structure of security in Eastern Europe.

So in that sense, this whole troop build-up might not be about an impending invasion at all. It might just be about coercive diplomacy, getting the U.S. to the table, and getting them to hammer out an agreement that would somehow pledge to keep Ukraine out of NATO and pledge to keep Western military infrastructure out of Ukraine and parts of the Black Sea.

michael barbaro

Well in that sense, Anton, Putin may be getting what he wants, right? Because as we speak, President Putin and President Biden have just wrapped up a very closely watched phone call about all of this. So is it possible that that call produces a breakthrough and perhaps a breakthrough that goes Putin’s way?

anton troianovski

Well, that’s very hard to imagine. And that’s really what makes this situation so volatile and so dangerous, which is that what Putin wants, the West and President Biden can’t really give.

michael barbaro

Why not?

anton troianovski

Well, for instance, pledging to keep Ukraine out of NATO would violate the Western concept that every country should have the right to decide for itself what its alliances are. President Biden obviously has spent years, going back to when he was vice president, really speaking in favor of Ukrainian sovereignty and self-determination and trying to help Ukraine take a more Western path. So Biden suddenly turning on all of that and giving Putin what he wants here is hard to imagine.

michael barbaro

Right, because that would create a very slippery slope when it comes to any country that Russia wants to have influence over. It would then know that the right playbook would be to mass troops on the border and wait for negotiation with the U.S. and hope that the U.S. would basically sell those countries out. That’s probably not something you’re saying that President Biden would willingly do.

anton troianovski

Right. And then, of course, the other question is, well, if Russia doesn’t get what it wants, if Putin doesn’t get what he wants, then what does he do?

michael barbaro

So Anton, it’s tempting to think that this could all be what you just described as a coercive diplomatic bluff by Putin to extract what he wants from President Biden and from the West. But it feels like history has taught us that Putin is willing to invade Ukraine. He did it in 2014.

History has also taught us that he’s obsessed with Ukraine, dating back to 1991 and the end of the Soviet Union. And it feels like one of the ultimate lessons of history is that we have to judge leaders based on their actions. And his actions right now are putting 175,000 troops near the border with Ukraine. And so shouldn’t we conclude that it very much looks like Putin might carry out this invasion?

anton troianovski

Yes, that’s right. And of course, there are steps that Putin could take that would be short of a full-fledged invasion that could still be really destabilizing and damaging. Here in Moscow, I’ve heard analysts speculate about maybe pinpoint airstrikes against the Ukrainian targets, or a limited invasion perhaps just specifically in that area where Russian-backed separatists are fighting.

But even such steps could have really grave consequences. And that’s why if you combine what we’re seeing on the ground in Russia, near the border, and what we’ve been hearing from President Putin and other officials here in Moscow, that all tells us that the stakes here are really high.

michael barbaro

Well, Anton, thank you very much. We appreciate your time.

anton troianovski

Thanks for having me.

michael barbaro

On Tuesday afternoon, both the White House and the Kremlin released details about the call between Putin and Biden. The White House said that Biden warned Putin of severe economic sanctions if Russia invaded Ukraine. The Kremlin said that Putin repeated his demands that Ukraine not be allowed to join NATO and that Western weapons systems not be placed inside Ukraine. But Putin made no promises to remove Russian forces from the border.

[music]

We’ll be right back.

Here’s what else you need to know today. On Tuesday night, top Democrats and Republicans said they had reached a deal to raise the country’s debt ceiling and avert the U.S. defaulting on its debt for the first time. The deal relies on a complicated one-time legislative maneuver that allows Democrats in the Senate to raise the debt ceiling without support from Republicans, since Republicans oppose raising the debt ceiling under President Biden. Without congressional action, the Treasury Department says it can no longer pay its bills after December 15.

Today’s episode was produced by Eric Krupke, Rachelle Bonja and Luke Vander Ploeg. It was edited by Michael Benoist, contains original music by Dan Powell and Marion Lozano, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for The Daily. I’m Michael Barbaro. See you tomorrow.

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Peter Thiel, the Right’s Would-Be Kingmaker

Mr. Thiel has attracted the most attention for two $10 million donations to the Senate candidates Blake Masters in Arizona and J.D. Vance in Ohio. Like Mr. Thiel, the men are tech investors with pedigrees from elite universities who cast themselves as antagonists to the establishment. They have also worked for the billionaire and been financially dependent on him. Mr. Masters, the chief operating officer of Thiel Capital, the investor’s family office, has promised to leave that job before Arizona’s August primary.

Mr. Thiel, who declined to comment for this article, announced last week that he would leave the board of Meta, the parent company of Facebook, which conservatives have accused of censorship. One reason for the change: He plans to focus more on politics.

Born in West Germany and raised in South Africa and the San Francisco Bay Area, Mr. Thiel showed his provocative side at Stanford in the late 1980s. Classmates recalled Mr. Thiel, who studied philosophy and law, describing South Africa’s apartheid as a sound economic system. (A spokesman for Mr. Thiel has denied that he supported apartheid.)

Mr. Thiel also helped found The Stanford Review, a conservative campus paper that sought to provide “alternative views” to what he deemed left-wing orthodoxy.

In 1995, he co-wrote a book, “The Diversity Myth,” arguing that “the extreme focus on racism” had caused greater societal tension and acrimony. Rape, he and his co-author, David Sacks, wrote, sometimes included “seductions that are later regretted.” (Mr. Thiel has apologized for the book.)

In 1998, Mr. Thiel helped create what would become the digital payments company PayPal. He became Facebook’s first outside investor in 2004 and established the venture capital firm Founders Fund a year later. Forbes puts his fortune at $2.6 billion.

one 2009 piece, Mr. Thiel, who called himself a libertarian, wrote that he had come to “no longer believe that freedom and democracy are compatible,” arguing that American politics would always be hostile to free-market ideals, and that politics was about interfering with other people’s lives without their consent. Since then, he has hosted and attended events with white nationalists and alt-right figures.

His political giving evolved with those views. He donated lavishly to Ron Paul’s 2008 and 2012 presidential campaigns before turning to candidates who were more extreme than the Republican establishment.

In 2013, Curtis Yarvin, an entrepreneur who has voiced racist beliefs and said democracy was a destructive system of government, emailed Mr. Thiel. Mr. Yarvin wrote that Mr. Cruz, then a newly elected senator, “needs to purge every single traitor” from the Republican Party. In the email, which The Times obtained, Mr. Yarvin argued that it didn’t matter if those candidates lost general elections or cost the party control in Congress.

Mr. Thiel, who had donated to Mr. Cruz’s 2012 campaign, replied, “It’s relatively safe to support Cruz (for me) because he threatens the Republican establishment.”

Mr. Thiel used his money to fund other causes. In 2016, he was revealed as the secret funder of a lawsuit that targeted Gawker Media, which had reported he was gay. Gawker declared bankruptcy, partly from the costs of fighting the lawsuit.

proud to be a gay Republican supporting Mr. Trump. He later donated $1.25 million to the candidate.

After Mr. Trump won, Mr. Thiel was named to the president-elect’s executive transition team. At a meeting with tech leaders at Trump Tower in Manhattan in December 2016, Mr. Trump told Mr. Thiel, “You’re a very special guy.”

A month later, Mr. Thiel, a naturalized American, was revealed to have also obtained citizenship in New Zealand. That prompted a furor, especially after Mr. Trump had urged people to pledge “total allegiance to the United States.”

During Mr. Trump’s presidency, Mr. Thiel became frustrated with the administration. “There are all these ways that things have fallen short,” he told The Times in 2018.

In 2020, he stayed on the sidelines. His only notable federal election donation was to Kris Kobach, a Trump ally and former secretary of state of Kansas known for his hard-line views on immigration. (Mr. Kobach lost his primary bid for the Senate.)

Mr. Thiel’s personal priorities also changed. In 2016, he announced that he was moving from San Francisco to Los Angeles. The next year, he married a longtime boyfriend, Matt Danzeisen; they have two children.

Mr. Thiel reduced his business commitments and started pondering leaving Meta’s board, which he had joined in 2005, two of the people with knowledge of his thinking said. At an October event held by a conservative tech group in Miami, he alluded to his frustration with Facebook, which was increasingly removing certain kinds of speech and had barred Mr. Trump.

a $13 million mansion in Washington from Wilbur Ross, Mr. Trump’s commerce secretary. In October, he spoke at the event for the Federalist Society at Stanford and at the National Conservatism Conference.

He also rebuilt his relationship with Mr. Trump. Since the 2020 election, they have met at least three times in New York and at Mar-a-Lago, sometimes with Mr. Masters or Mr. Vance. And Mr. Thiel invested in Mr. McEntee’s company, which is building a dating app for conservatives called the RightStuff.

Mr. McEntee declined to answer questions about his app and said Mr. Thiel was “a great guy.” Mr. Trump’s representatives did not respond to requests for comment.

Mr. Thiel’s political giving ramped up last spring with his $10 million checks to PACs supporting Mr. Vance and Mr. Masters. The sums were his biggest and the largest ever one-time contributions to a PAC backing a single candidate, according to OpenSecrets.

Like Mr. Trump in 2016, Mr. Vance and Mr. Masters lack experience in politics. Mr. Vance, the venture capitalist who wrote the best-selling memoir “Hillbilly Elegy,” met Mr. Thiel a decade ago when the billionaire delivered a lecture at Yale Law School, where Mr. Vance was a student.

Zero to One.” In 2020, Mr. Masters reported more than $1.1 million in salary from Thiel Capital and book royalties.

Mr. Vance, Mr. Masters and their campaigns did not respond to requests for comment.

Both candidates have repeated the Trumpian lie of election fraud, with Mr. Masters stating in a November campaign ad, “I think Trump won in 2020.” They have also made Mr. Thiel a selling point in their campaigns.

In November, Mr. Vance wrote on Twitter that anyone who donated $10,800 to his campaign could attend a small group dinner with him and Mr. Thiel. Mr. Masters offered the same opportunity for a meal with Mr. Thiel and raised $550,000 by selling nonfungible tokens, or NFTs, of “Zero to One” digital art that would give holders “access to parties with me and Peter.”

a 20-minute speech at the National Conservatism Conference in October, he said nationalism was “a corrective” to the “brain-dead, one-world state” of globalism. He also blasted the Biden administration.

“We have the zombie retreads just busy rearranging the deck chairs,” he said. “We need dissident voices more than ever.”

Cade Metz contributed reporting. Rachel Shorey and Kitty Bennett contributed research.

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Ukraine Live Updates: Russia Holds Large Military Drills Amid No Sign of Diplomatic Progress

michael barbaro

From The New York Times, I’m Michael Barbaro. This is The Daily.

[music]

Today: Russia is making preparations for what many fear may be a full-scale invasion of Ukraine, prompting warnings from the U.S. of serious consequences if it does. I spoke to my colleague, Moscow bureau chief Anton Troianovski, about what Vladimir Putin wants from Ukraine and just how far he may go to get it.

It’s Wednesday, December 8.

Anton, describe the scene right now on the border between Ukraine and Russia. What does it look like? What exactly is happening there?

anton troianovski

Well, what you’re seeing on the Russian side of the border within 100 to 200 miles away is that thousands of Russian troops are on the move.

archived recording 1

A top military official says intelligence shows nearly 100,000 Russian troops —

archived recording 2

Russian troops have massed on the border of Ukraine.

archived recording 3

— troops on the border with Ukraine. And that’s prompted fears of an invasion early next year.

anton troianovski

We’re seeing a lot of social media footage of tanks and other military equipment on the move, on trains, in some cases, heading west toward the Ukraine border area from as far away as Siberia.

archived recording

Tensions between Russia and Ukraine have been building for some time in the wake of —

anton troianovski

These satellite images that we’re seeing show deployment areas around Ukraine that were empty as recently as June that are now full of military equipment-like tanks and armored personnel carriers.

archived recording

The U.S. called it unusual activity.

anton troianovski

And obviously, Russia moves its forces all the time. It does big military exercises, snap military exercises all the time, but what we’re being told is that these military movements are very unusual. Some of them are happening at night and, in other ways, seemingly designed to obfuscate where various units are going. And experts are saying we’re also seeing things like logistics and medical equipment being moved around, stuff that you really would see if there were real preparations being made for large-scale military action.

michael barbaro

So what’s happening in Russia is not just the movement of the troops that would perhaps carry out an invasion, but the kind of military personnel and equipment that would be required to deal with the repercussions of something like invading Ukraine?

anton troianovski

Yes. So American intelligence officials are seeing intelligence that shows Russia preparing for a military offensive involving an estimated 175,000 troops —

michael barbaro

Wow.

anton troianovski

— as soon as early next year.

michael barbaro

And Anton, is Ukraine preparing for what certainly looks, from what you just described, as a potential invasion?

anton troianovski

They’re in a really tough spot because no matter how much they prepare, their military would be utterly outgunned and outmatched. Ukraine doesn’t have the missile defense and air defense systems that could prevent a huge shock-and-awe campaign at the beginning of Russian military action.

They also don’t know, if and when an attack comes, which direction it might come from, because Russia could attack from any of three directions. So we’re not seeing a big mobilization in Ukraine right now, but our reporting on the ground there does show a grim and determined mood among the military. The soldiers on the border have made it clear that if it comes to it, they will be prepared to do what they can to make this as costly as possible for the other side.

michael barbaro

So I guess the question everyone has in this moment is why would Putin want to invade Ukraine right now and touch off what would no doubt be a major conflict, one in which, as you just said, Russia would have many advantages, but would nevertheless end up probably being a very deadly conflict?

anton troianovski

So obviously, we don’t yet know whether Putin has made the decision to invade. He’s clearly signaling he’s prepared to use military force. What we do know is that he has been extraordinarily fixated on the issue of Ukraine for years. But I think to really understand it, you have to look at three dates over the last 30 years that really show us why Ukraine matters so much to Putin.

michael barbaro

OK. So what’s the first date?

anton troianovski

The first one, 1991, almost exactly 30 years ago, the Soviet Union breaks up, and Ukraine becomes an independent country. For people of Putin’s generation, this was an incredibly shocking and even traumatic moment. Not only did they see and experience the collapse of an empire, of the country that they grew up in, that they worked in, that, in Putin’s case, the former K.G.B. officer that they served. But there was also a specific trauma of Ukraine breaking away. Ukraine, of all the former Soviet republics, was probably the one most valuable to Moscow.

It was a matter of history and identity with, in many ways, Russian statehood originating out of the medieval Kiev Rus civilization. There’s the matter of culture with so many Russian language writers like Gogol and Bulgakov coming from Ukraine. There was the matter of economics with Ukraine being an industrial and agricultural powerhouse during the Soviet Union, with many of the planes and missiles that the Soviets were most proud of coming from Ukraine.

michael barbaro

So there’s a sense that Ukraine is the cradle of Russian civilization, and to lose it is to lose a part of Russia itself.

anton troianovski

Yeah. And it’s a country of tens of millions of people that is also sandwiched between modern-day Russia and Western Europe. So the other issue is geopolitical, that Ukraine in that sort of Cold War security, East-versus-West mindset, Ukraine was a buffer between Moscow and the West. So 1991 was the year when that all fell apart.

And then by the time that Putin comes to power 10 years later, he’s already clearly thinking about how to reestablish Russian influence in that former Soviet space in Eastern Europe and in Ukraine in particular. We saw a lot of resources go in economically to try to bind Ukraine to Russia, whether it’s discounts on natural gas or other efforts by Russian companies, efforts to build ties to politicians and oligarchs in Ukraine. Really, a multipronged effort by Putin and the Kremlin to really gain as much influence as possible in that former Soviet space that they saw as being so key to Russia’s economic and security interests.

michael barbaro

Got it.

anton troianovski

And then fast forward to the second key date, 2014, which is the year it became clear that that strategy had failed.

archived recording

Now, to the growing unrest in Ukraine and the violent clashes between riot police and protesters.

michael barbaro

And why did that strategy fail in 2014?

anton troianovski

That was the year that Ukraine had its — what’s called its Maidan Revolution.

archived recording 1

The situation in Kiev has been very tense.

archived recording 2

Downtown Kiev has been turned into a charred battlefield following two straight nights of rioting.

anton troianovski

It’s a pro-Western revolution —

archived recording

They want nothing short of revolution, a new government and a new president.

anton troianovski

— that drove out a Russia-friendly president, that ushered in a pro-Western government, that made it its mission to reduce Ukraine’s ties with Russia and build its ties with the West.

archived recording

Ukrainians who want closer ties with the West are once again back in their thousands on Independence Square here in Kiev. They believe they —

michael barbaro

Hmm. And what was Putin’s response to that?

anton troianovski

Well, Putin didn’t even see it as a revolution. He saw it as a coup engineered by the C.I.A. and other Western intelligence agencies meant to drive Ukraine away from Russia. And —

archived recording

With stealth and mystery, Vladimir Putin made his move in Ukraine.

anton troianovski

— he used his military.

archived recording

At dawn, bands of armed men appeared at the two main airports in Crimea and seized control.

anton troianovski

He sent troops into Crimea, the Ukrainian Peninsula in the Black Sea that’s so dear to people across the former Soviet Union as kind of the warmest, most tropical place in a very cold part of the world.

archived recording

Tonight, Russian troops — hundreds, perhaps as many as 2,000, ferried in transport planes — have landed at the airports.

anton troianovski

He fomented a separatist war in Eastern Ukraine that by now has taken more than 10,000 lives and armed and backed pro-Russian separatists in that region. So that was the year 2014 when Russia’s earlier efforts to try to bind Ukraine to Moscow failed and when Russia started taking a much harder line.

michael barbaro

And this feels like a very pivotal moment because it shows Putin’s willingness to deploy the Russian military to strengthen the ties between Russia and Ukraine.

anton troianovski

Absolutely. Strengthened the ties or you can also say his efforts to enforce a Russian sphere of influence by military force. And it’s also the start of what we’ve been seeing ever since, which is Putin making it clear that he is willing to escalate, he is willing to raise the stakes and that he essentially cares more about the fate of Ukraine than the West does.

And that brings us to the third date I wanted to talk about, which is early this year, 2021, when we saw the President of Ukraine, Volodymyr Zelensky, really start taking a more aggressive anti-Russian and pro-Western tack. He cracked down on a pro-Russian oligarch and pro-Russian media. He continued with military exercises with American soldiers and with other Western forces.

He kept talking up the idea of Ukraine joining NATO. That’s the North Atlantic Treaty Organization, the Western military alliance. And in a sense, this is what Putin seems to fear the most, the idea of NATO becoming more entrenched in this region. So Putin made it clear that this was starting to cross what he describes as Russia’s red lines and that Russia was willing to take action to stop this.

michael barbaro

So to put this all together and understand why Putin is doing what he’s doing when it comes to Ukraine, we have as a backdrop here this fixation with Ukraine for historic, political, economic and cultural reasons. And what’s new and urgent here for Putin is his belief that Ukraine is on the verge of a major break with Russia and toward the West — in particular, a military alliance, NATO — and that he cannot tolerate. And so that brings us up to now and this very imminent and scary threat of a Russian invasion.

anton troianovski

That’s right, Michael. I spoke to a former advisor of Putin’s recently who described Ukraine as a trauma within a trauma for the Kremlin — so the trauma of the breakup of the Soviet Union plus the trauma of losing Ukraine specifically for all those reasons you mentioned. And the thing is it’s true.

Russia is losing Ukraine. I think objectively, though, you have to say it’s losing Ukraine in large part because of Putin’s policies, because of the aggressive actions he’s taken. And if you look at the polls before 2014, something like 12 percent of Ukrainians wanted to join NATO. Now, it’s more than half.

michael barbaro

Wow.

anton troianovski

So you put all that together, Ukraine is indeed drifting toward the West. It does seem like Putin feels like he’s running out of time to stop this and that he’s willing to escalate, he’s willing to raise the stakes, to keep Ukraine out of the West. And what we’re seeing right now on the border is all that playing out.

[music]
michael barbaro

We’ll be right back.

So Anton, the question right now is will President Putin actually carry out an invasion of Ukraine? And how should we be thinking about that?

anton troianovski

Well, it’s quite perilous, of course, to try to get inside Putin’s head, but here’s the case for invading now. Number one: NATO and the United States have made it clear that they are not going to come to Ukraine’s defense, because Ukraine is not a member of the NATO alliance, and NATO’s mutual defense pact only extends to full-fledged members. And of course, I think, politically, Putin believes that neither in the U.S., nor in Western Europe, is there the will to see soldiers from those countries die fighting for Ukraine.

michael barbaro

Right. And President Biden has just very publicly pulled the United States out of the war in Afghanistan and more or less communicated that unless American national security interests are at play, he will not be dispatching troops anywhere.

anton troianovski

Exactly. So Putin saw that, and he sees that potentially things could change. If the West does have more of a military presence in Ukraine in the future, let alone if Ukraine were to become a member of NATO at some point — it’s not going to happen in the next few years, but perhaps at some point — then attacking Ukraine becomes a much more costly proposition. So it’s a matter of war now could be less costly to Russia than war later.

michael barbaro

Right. The geopolitics of this moment may work in favor of him doing it in a way that it might not in a year or two or three.

anton troianovski

Absolutely. And then there’s a couple of other reasons. There’s the fact that if we look at everything Putin has said and written over the last year, he really seems convinced that the West is pulling Ukraine away from Russia against the will of much of the Ukrainian people. Polling doesn’t really bear that out, but Putin really seems to be convinced of that. And so it seems like he may also be thinking that Ukrainians would welcome Russian forces as liberators from some kind of Western occupation.

And then third, there’s the economy. The West has already threatened severe sanctions against Russia were it to go ahead with military action, but Russia has been essentially sanctions-proofing its economy since at least 2014, which is when it took control of Crimea and was hit by all these sanctions from the U.S. and from the E.U. So Russia’s economy is still tied to the West.

It imports a lot of stuff from the West. But in many key areas, whether it’s technology or energy extraction or agriculture, Russia is becoming more self-sufficient. And it is building ties to other parts of the world — like China, India, et cetera — that could allow it to diversify and have basically an economic base even if an invasion leads to a major crisis in its financial and economic relationship with the West.

michael barbaro

Right. So this is the argument that Putin can live with the costs of the world reacting very negatively to this invasion?

anton troianovski

Exactly.

michael barbaro

OK. And what are the reasons why an invasion of Ukraine might not happen? What would be the case against it, if you were Vladimir Putin?

anton troianovski

Well, I mean, I have to say, talking to analysts, especially here in Russia, people are very skeptical that Putin would go ahead with an invasion. They point out that he is a careful tactician and that he doesn’t like making moves that are irreversible or that could have unpredictable consequences.

So if we even look at the military action he’s taken recently, the annexation of Crimea, there wasn’t a single shot fired in that. That was a very quick special-forces-type operation. What we’re talking about here, an invasion of Ukraine, would be just a massive escalation from anything Putin has done so far. We are talking about the biggest land war in Europe since World War II, most likely. And it would have all kinds of unpredictable consequences.

There’s also the domestic situation to keep in mind. Putin does still have approval ratings above 60 percent, but things are a bit shaky here, especially with Covid. And some analysts say that Putin wouldn’t want to usher in the kind of domestic unpredictability that could start with a major war with young men coming back in body bags.

And then finally, looking at Putin’s strategy and everything that he’s said, for all we know, he doesn’t really want to annex Ukraine. He wants influence over Ukraine. And the way he thinks he can do that is through negotiations with the United States.

And that’s where the last key point here comes in, which is Putin’s real conviction that it’s the U.S. pulling the strings here and that he can accomplish his goals by getting President Biden to sit down with him and hammering out a deal about the structure of security in Eastern Europe.

So in that sense, this whole troop build-up might not be about an impending invasion at all. It might just be about coercive diplomacy, getting the U.S. to the table, and getting them to hammer out an agreement that would somehow pledge to keep Ukraine out of NATO and pledge to keep Western military infrastructure out of Ukraine and parts of the Black Sea.

michael barbaro

Well in that sense, Anton, Putin may be getting what he wants, right? Because as we speak, President Putin and President Biden have just wrapped up a very closely watched phone call about all of this. So is it possible that that call produces a breakthrough and perhaps a breakthrough that goes Putin’s way?

anton troianovski

Well, that’s very hard to imagine. And that’s really what makes this situation so volatile and so dangerous, which is that what Putin wants, the West and President Biden can’t really give.

michael barbaro

Why not?

anton troianovski

Well, for instance, pledging to keep Ukraine out of NATO would violate the Western concept that every country should have the right to decide for itself what its alliances are. President Biden obviously has spent years, going back to when he was vice president, really speaking in favor of Ukrainian sovereignty and self-determination and trying to help Ukraine take a more Western path. So Biden suddenly turning on all of that and giving Putin what he wants here is hard to imagine.

michael barbaro

Right, because that would create a very slippery slope when it comes to any country that Russia wants to have influence over. It would then know that the right playbook would be to mass troops on the border and wait for negotiation with the U.S. and hope that the U.S. would basically sell those countries out. That’s probably not something you’re saying that President Biden would willingly do.

anton troianovski

Right. And then, of course, the other question is, well, if Russia doesn’t get what it wants, if Putin doesn’t get what he wants, then what does he do?

michael barbaro

So Anton, it’s tempting to think that this could all be what you just described as a coercive diplomatic bluff by Putin to extract what he wants from President Biden and from the West. But it feels like history has taught us that Putin is willing to invade Ukraine. He did it in 2014.

History has also taught us that he’s obsessed with Ukraine, dating back to 1991 and the end of the Soviet Union. And it feels like one of the ultimate lessons of history is that we have to judge leaders based on their actions. And his actions right now are putting 175,000 troops near the border with Ukraine. And so shouldn’t we conclude that it very much looks like Putin might carry out this invasion?

anton troianovski

Yes, that’s right. And of course, there are steps that Putin could take that would be short of a full-fledged invasion that could still be really destabilizing and damaging. Here in Moscow, I’ve heard analysts speculate about maybe pinpoint airstrikes against the Ukrainian targets, or a limited invasion perhaps just specifically in that area where Russian-backed separatists are fighting.

But even such steps could have really grave consequences. And that’s why if you combine what we’re seeing on the ground in Russia, near the border, and what we’ve been hearing from President Putin and other officials here in Moscow, that all tells us that the stakes here are really high.

michael barbaro

Well, Anton, thank you very much. We appreciate your time.

anton troianovski

Thanks for having me.

michael barbaro

On Tuesday afternoon, both the White House and the Kremlin released details about the call between Putin and Biden. The White House said that Biden warned Putin of severe economic sanctions if Russia invaded Ukraine. The Kremlin said that Putin repeated his demands that Ukraine not be allowed to join NATO and that Western weapons systems not be placed inside Ukraine. But Putin made no promises to remove Russian forces from the border.

[music]

We’ll be right back.

Here’s what else you need to know today. On Tuesday night, top Democrats and Republicans said they had reached a deal to raise the country’s debt ceiling and avert the U.S. defaulting on its debt for the first time. The deal relies on a complicated one-time legislative maneuver that allows Democrats in the Senate to raise the debt ceiling without support from Republicans, since Republicans oppose raising the debt ceiling under President Biden. Without congressional action, the Treasury Department says it can no longer pay its bills after December 15.

Today’s episode was produced by Eric Krupke, Rachelle Bonja and Luke Vander Ploeg. It was edited by Michael Benoist, contains original music by Dan Powell and Marion Lozano, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for The Daily. I’m Michael Barbaro. See you tomorrow.

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Live Updates: Blinken and Lavrov Pledge to Keep Talking as Military Buildup Continues Around Ukraine

michael barbaro

From The New York Times, I’m Michael Barbaro. This is The Daily.

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Today: Russia is making preparations for what many fear may be a full-scale invasion of Ukraine, prompting warnings from the U.S. of serious consequences if it does. I spoke to my colleague, Moscow bureau chief Anton Troianovski, about what Vladimir Putin wants from Ukraine and just how far he may go to get it.

It’s Wednesday, December 8.

Anton, describe the scene right now on the border between Ukraine and Russia. What does it look like? What exactly is happening there?

anton troianovski

Well, what you’re seeing on the Russian side of the border within 100 to 200 miles away is that thousands of Russian troops are on the move.

archived recording 1

A top military official says intelligence shows nearly 100,000 Russian troops —

archived recording 2

Russian troops have massed on the border of Ukraine.

archived recording 3

— troops on the border with Ukraine. And that’s prompted fears of an invasion early next year.

anton troianovski

We’re seeing a lot of social media footage of tanks and other military equipment on the move, on trains, in some cases, heading west toward the Ukraine border area from as far away as Siberia.

archived recording

Tensions between Russia and Ukraine have been building for some time in the wake of —

anton troianovski

These satellite images that we’re seeing show deployment areas around Ukraine that were empty as recently as June that are now full of military equipment-like tanks and armored personnel carriers.

archived recording

The U.S. called it unusual activity.

anton troianovski

And obviously, Russia moves its forces all the time. It does big military exercises, snap military exercises all the time, but what we’re being told is that these military movements are very unusual. Some of them are happening at night and, in other ways, seemingly designed to obfuscate where various units are going. And experts are saying we’re also seeing things like logistics and medical equipment being moved around, stuff that you really would see if there were real preparations being made for large-scale military action.

michael barbaro

So what’s happening in Russia is not just the movement of the troops that would perhaps carry out an invasion, but the kind of military personnel and equipment that would be required to deal with the repercussions of something like invading Ukraine?

anton troianovski

Yes. So American intelligence officials are seeing intelligence that shows Russia preparing for a military offensive involving an estimated 175,000 troops —

michael barbaro

Wow.

anton troianovski

— as soon as early next year.

michael barbaro

And Anton, is Ukraine preparing for what certainly looks, from what you just described, as a potential invasion?

anton troianovski

They’re in a really tough spot because no matter how much they prepare, their military would be utterly outgunned and outmatched. Ukraine doesn’t have the missile defense and air defense systems that could prevent a huge shock-and-awe campaign at the beginning of Russian military action.

They also don’t know, if and when an attack comes, which direction it might come from, because Russia could attack from any of three directions. So we’re not seeing a big mobilization in Ukraine right now, but our reporting on the ground there does show a grim and determined mood among the military. The soldiers on the border have made it clear that if it comes to it, they will be prepared to do what they can to make this as costly as possible for the other side.

michael barbaro

So I guess the question everyone has in this moment is why would Putin want to invade Ukraine right now and touch off what would no doubt be a major conflict, one in which, as you just said, Russia would have many advantages, but would nevertheless end up probably being a very deadly conflict?

anton troianovski

So obviously, we don’t yet know whether Putin has made the decision to invade. He’s clearly signaling he’s prepared to use military force. What we do know is that he has been extraordinarily fixated on the issue of Ukraine for years. But I think to really understand it, you have to look at three dates over the last 30 years that really show us why Ukraine matters so much to Putin.

michael barbaro

OK. So what’s the first date?

anton troianovski

The first one, 1991, almost exactly 30 years ago, the Soviet Union breaks up, and Ukraine becomes an independent country. For people of Putin’s generation, this was an incredibly shocking and even traumatic moment. Not only did they see and experience the collapse of an empire, of the country that they grew up in, that they worked in, that, in Putin’s case, the former K.G.B. officer that they served. But there was also a specific trauma of Ukraine breaking away. Ukraine, of all the former Soviet republics, was probably the one most valuable to Moscow.

It was a matter of history and identity with, in many ways, Russian statehood originating out of the medieval Kiev Rus civilization. There’s the matter of culture with so many Russian language writers like Gogol and Bulgakov coming from Ukraine. There was the matter of economics with Ukraine being an industrial and agricultural powerhouse during the Soviet Union, with many of the planes and missiles that the Soviets were most proud of coming from Ukraine.

michael barbaro

So there’s a sense that Ukraine is the cradle of Russian civilization, and to lose it is to lose a part of Russia itself.

anton troianovski

Yeah. And it’s a country of tens of millions of people that is also sandwiched between modern-day Russia and Western Europe. So the other issue is geopolitical, that Ukraine in that sort of Cold War security, East-versus-West mindset, Ukraine was a buffer between Moscow and the West. So 1991 was the year when that all fell apart.

And then by the time that Putin comes to power 10 years later, he’s already clearly thinking about how to reestablish Russian influence in that former Soviet space in Eastern Europe and in Ukraine in particular. We saw a lot of resources go in economically to try to bind Ukraine to Russia, whether it’s discounts on natural gas or other efforts by Russian companies, efforts to build ties to politicians and oligarchs in Ukraine. Really, a multipronged effort by Putin and the Kremlin to really gain as much influence as possible in that former Soviet space that they saw as being so key to Russia’s economic and security interests.

michael barbaro

Got it.

anton troianovski

And then fast forward to the second key date, 2014, which is the year it became clear that that strategy had failed.

archived recording

Now, to the growing unrest in Ukraine and the violent clashes between riot police and protesters.

michael barbaro

And why did that strategy fail in 2014?

anton troianovski

That was the year that Ukraine had its — what’s called its Maidan Revolution.

archived recording 1

The situation in Kiev has been very tense.

archived recording 2

Downtown Kiev has been turned into a charred battlefield following two straight nights of rioting.

anton troianovski

It’s a pro-Western revolution —

archived recording

They want nothing short of revolution, a new government and a new president.

anton troianovski

— that drove out a Russia-friendly president, that ushered in a pro-Western government, that made it its mission to reduce Ukraine’s ties with Russia and build its ties with the West.

archived recording

Ukrainians who want closer ties with the West are once again back in their thousands on Independence Square here in Kiev. They believe they —

michael barbaro

Hmm. And what was Putin’s response to that?

anton troianovski

Well, Putin didn’t even see it as a revolution. He saw it as a coup engineered by the C.I.A. and other Western intelligence agencies meant to drive Ukraine away from Russia. And —

archived recording

With stealth and mystery, Vladimir Putin made his move in Ukraine.

anton troianovski

— he used his military.

archived recording

At dawn, bands of armed men appeared at the two main airports in Crimea and seized control.

anton troianovski

He sent troops into Crimea, the Ukrainian Peninsula in the Black Sea that’s so dear to people across the former Soviet Union as kind of the warmest, most tropical place in a very cold part of the world.

archived recording

Tonight, Russian troops — hundreds, perhaps as many as 2,000, ferried in transport planes — have landed at the airports.

anton troianovski

He fomented a separatist war in Eastern Ukraine that by now has taken more than 10,000 lives and armed and backed pro-Russian separatists in that region. So that was the year 2014 when Russia’s earlier efforts to try to bind Ukraine to Moscow failed and when Russia started taking a much harder line.

michael barbaro

And this feels like a very pivotal moment because it shows Putin’s willingness to deploy the Russian military to strengthen the ties between Russia and Ukraine.

anton troianovski

Absolutely. Strengthened the ties or you can also say his efforts to enforce a Russian sphere of influence by military force. And it’s also the start of what we’ve been seeing ever since, which is Putin making it clear that he is willing to escalate, he is willing to raise the stakes and that he essentially cares more about the fate of Ukraine than the West does.

And that brings us to the third date I wanted to talk about, which is early this year, 2021, when we saw the President of Ukraine, Volodymyr Zelensky, really start taking a more aggressive anti-Russian and pro-Western tack. He cracked down on a pro-Russian oligarch and pro-Russian media. He continued with military exercises with American soldiers and with other Western forces.

He kept talking up the idea of Ukraine joining NATO. That’s the North Atlantic Treaty Organization, the Western military alliance. And in a sense, this is what Putin seems to fear the most, the idea of NATO becoming more entrenched in this region. So Putin made it clear that this was starting to cross what he describes as Russia’s red lines and that Russia was willing to take action to stop this.

michael barbaro

So to put this all together and understand why Putin is doing what he’s doing when it comes to Ukraine, we have as a backdrop here this fixation with Ukraine for historic, political, economic and cultural reasons. And what’s new and urgent here for Putin is his belief that Ukraine is on the verge of a major break with Russia and toward the West — in particular, a military alliance, NATO — and that he cannot tolerate. And so that brings us up to now and this very imminent and scary threat of a Russian invasion.

anton troianovski

That’s right, Michael. I spoke to a former advisor of Putin’s recently who described Ukraine as a trauma within a trauma for the Kremlin — so the trauma of the breakup of the Soviet Union plus the trauma of losing Ukraine specifically for all those reasons you mentioned. And the thing is it’s true.

Russia is losing Ukraine. I think objectively, though, you have to say it’s losing Ukraine in large part because of Putin’s policies, because of the aggressive actions he’s taken. And if you look at the polls before 2014, something like 12 percent of Ukrainians wanted to join NATO. Now, it’s more than half.

michael barbaro

Wow.

anton troianovski

So you put all that together, Ukraine is indeed drifting toward the West. It does seem like Putin feels like he’s running out of time to stop this and that he’s willing to escalate, he’s willing to raise the stakes, to keep Ukraine out of the West. And what we’re seeing right now on the border is all that playing out.

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michael barbaro

We’ll be right back.

So Anton, the question right now is will President Putin actually carry out an invasion of Ukraine? And how should we be thinking about that?

anton troianovski

Well, it’s quite perilous, of course, to try to get inside Putin’s head, but here’s the case for invading now. Number one: NATO and the United States have made it clear that they are not going to come to Ukraine’s defense, because Ukraine is not a member of the NATO alliance, and NATO’s mutual defense pact only extends to full-fledged members. And of course, I think, politically, Putin believes that neither in the U.S., nor in Western Europe, is there the will to see soldiers from those countries die fighting for Ukraine.

michael barbaro

Right. And President Biden has just very publicly pulled the United States out of the war in Afghanistan and more or less communicated that unless American national security interests are at play, he will not be dispatching troops anywhere.

anton troianovski

Exactly. So Putin saw that, and he sees that potentially things could change. If the West does have more of a military presence in Ukraine in the future, let alone if Ukraine were to become a member of NATO at some point — it’s not going to happen in the next few years, but perhaps at some point — then attacking Ukraine becomes a much more costly proposition. So it’s a matter of war now could be less costly to Russia than war later.

michael barbaro

Right. The geopolitics of this moment may work in favor of him doing it in a way that it might not in a year or two or three.

anton troianovski

Absolutely. And then there’s a couple of other reasons. There’s the fact that if we look at everything Putin has said and written over the last year, he really seems convinced that the West is pulling Ukraine away from Russia against the will of much of the Ukrainian people. Polling doesn’t really bear that out, but Putin really seems to be convinced of that. And so it seems like he may also be thinking that Ukrainians would welcome Russian forces as liberators from some kind of Western occupation.

And then third, there’s the economy. The West has already threatened severe sanctions against Russia were it to go ahead with military action, but Russia has been essentially sanctions-proofing its economy since at least 2014, which is when it took control of Crimea and was hit by all these sanctions from the U.S. and from the E.U. So Russia’s economy is still tied to the West.

It imports a lot of stuff from the West. But in many key areas, whether it’s technology or energy extraction or agriculture, Russia is becoming more self-sufficient. And it is building ties to other parts of the world — like China, India, et cetera — that could allow it to diversify and have basically an economic base even if an invasion leads to a major crisis in its financial and economic relationship with the West.

michael barbaro

Right. So this is the argument that Putin can live with the costs of the world reacting very negatively to this invasion?

anton troianovski

Exactly.

michael barbaro

OK. And what are the reasons why an invasion of Ukraine might not happen? What would be the case against it, if you were Vladimir Putin?

anton troianovski

Well, I mean, I have to say, talking to analysts, especially here in Russia, people are very skeptical that Putin would go ahead with an invasion. They point out that he is a careful tactician and that he doesn’t like making moves that are irreversible or that could have unpredictable consequences.

So if we even look at the military action he’s taken recently, the annexation of Crimea, there wasn’t a single shot fired in that. That was a very quick special-forces-type operation. What we’re talking about here, an invasion of Ukraine, would be just a massive escalation from anything Putin has done so far. We are talking about the biggest land war in Europe since World War II, most likely. And it would have all kinds of unpredictable consequences.

There’s also the domestic situation to keep in mind. Putin does still have approval ratings above 60 percent, but things are a bit shaky here, especially with Covid. And some analysts say that Putin wouldn’t want to usher in the kind of domestic unpredictability that could start with a major war with young men coming back in body bags.

And then finally, looking at Putin’s strategy and everything that he’s said, for all we know, he doesn’t really want to annex Ukraine. He wants influence over Ukraine. And the way he thinks he can do that is through negotiations with the United States.

And that’s where the last key point here comes in, which is Putin’s real conviction that it’s the U.S. pulling the strings here and that he can accomplish his goals by getting President Biden to sit down with him and hammering out a deal about the structure of security in Eastern Europe.

So in that sense, this whole troop build-up might not be about an impending invasion at all. It might just be about coercive diplomacy, getting the U.S. to the table, and getting them to hammer out an agreement that would somehow pledge to keep Ukraine out of NATO and pledge to keep Western military infrastructure out of Ukraine and parts of the Black Sea.

michael barbaro

Well in that sense, Anton, Putin may be getting what he wants, right? Because as we speak, President Putin and President Biden have just wrapped up a very closely watched phone call about all of this. So is it possible that that call produces a breakthrough and perhaps a breakthrough that goes Putin’s way?

anton troianovski

Well, that’s very hard to imagine. And that’s really what makes this situation so volatile and so dangerous, which is that what Putin wants, the West and President Biden can’t really give.

michael barbaro

Why not?

anton troianovski

Well, for instance, pledging to keep Ukraine out of NATO would violate the Western concept that every country should have the right to decide for itself what its alliances are. President Biden obviously has spent years, going back to when he was vice president, really speaking in favor of Ukrainian sovereignty and self-determination and trying to help Ukraine take a more Western path. So Biden suddenly turning on all of that and giving Putin what he wants here is hard to imagine.

michael barbaro

Right, because that would create a very slippery slope when it comes to any country that Russia wants to have influence over. It would then know that the right playbook would be to mass troops on the border and wait for negotiation with the U.S. and hope that the U.S. would basically sell those countries out. That’s probably not something you’re saying that President Biden would willingly do.

anton troianovski

Right. And then, of course, the other question is, well, if Russia doesn’t get what it wants, if Putin doesn’t get what he wants, then what does he do?

michael barbaro

So Anton, it’s tempting to think that this could all be what you just described as a coercive diplomatic bluff by Putin to extract what he wants from President Biden and from the West. But it feels like history has taught us that Putin is willing to invade Ukraine. He did it in 2014.

History has also taught us that he’s obsessed with Ukraine, dating back to 1991 and the end of the Soviet Union. And it feels like one of the ultimate lessons of history is that we have to judge leaders based on their actions. And his actions right now are putting 175,000 troops near the border with Ukraine. And so shouldn’t we conclude that it very much looks like Putin might carry out this invasion?

anton troianovski

Yes, that’s right. And of course, there are steps that Putin could take that would be short of a full-fledged invasion that could still be really destabilizing and damaging. Here in Moscow, I’ve heard analysts speculate about maybe pinpoint airstrikes against the Ukrainian targets, or a limited invasion perhaps just specifically in that area where Russian-backed separatists are fighting.

But even such steps could have really grave consequences. And that’s why if you combine what we’re seeing on the ground in Russia, near the border, and what we’ve been hearing from President Putin and other officials here in Moscow, that all tells us that the stakes here are really high.

michael barbaro

Well, Anton, thank you very much. We appreciate your time.

anton troianovski

Thanks for having me.

michael barbaro

On Tuesday afternoon, both the White House and the Kremlin released details about the call between Putin and Biden. The White House said that Biden warned Putin of severe economic sanctions if Russia invaded Ukraine. The Kremlin said that Putin repeated his demands that Ukraine not be allowed to join NATO and that Western weapons systems not be placed inside Ukraine. But Putin made no promises to remove Russian forces from the border.

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We’ll be right back.

Here’s what else you need to know today. On Tuesday night, top Democrats and Republicans said they had reached a deal to raise the country’s debt ceiling and avert the U.S. defaulting on its debt for the first time. The deal relies on a complicated one-time legislative maneuver that allows Democrats in the Senate to raise the debt ceiling without support from Republicans, since Republicans oppose raising the debt ceiling under President Biden. Without congressional action, the Treasury Department says it can no longer pay its bills after December 15.

Today’s episode was produced by Eric Krupke, Rachelle Bonja and Luke Vander Ploeg. It was edited by Michael Benoist, contains original music by Dan Powell and Marion Lozano, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for The Daily. I’m Michael Barbaro. See you tomorrow.

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A Fed Official’s 2020 Trade Drew Outcry. It Went Further Than First Disclosed.

That’s because Fed officials were actively rescuing a broad swath of markets in 2020: In March and April, they slashed rates to zero, bought mortgage-tied and government bonds in mass quantities, and rolled out rescue programs for corporate and municipal debt. Continuing to trade in affected securities for their own portfolios throughout the year could have given them room to profit from their privileged knowledge. At a minimum, it created an appearance problem, one that Mr. Powell himself has acknowledged.

Mr. Kaplan resigned in September, citing the scandal; Mr. Rosengren resigned simultaneously, citing health issues. Mr. Clarida’s term ends at the close of this month, which it was scheduled to do before news of the scandal broke.

Mr. Clarida’s trades, which Bloomberg reported earlier, also raised eyebrows among lawmakers, including Senator Elizabeth Warren of Massachusetts, who has demanded a Securities and Exchange Commission investigation into Fed officials’ 2020 trading. But many ethics experts had seen the transaction as more benign, if poorly timed, because it happened in a broad-based index and the Fed had said it was part of a planned and longer-term investment strategy.

The new disclosure casts doubt on that explanation, given that Mr. Clarida sold out of stocks just days before moving back into them.

“It’s peculiar,” said Norman Eisen, an ethics official in the Obama White House who said he probably would not have approved such a trade. “It’s fair to ask — in what respect does this constitute a rebalancing?”

It is unclear whether Mr. Clarida benefited financially from the trade, but it was most likely a lucrative move. By selling the stock fund as its value began to plummet and buying it back days later when the price per share was lower, Mr. Clarida would have ended up holding more shares, assuming he reinvested all of the money that he had withdrawn. The financial disclosures put both transactions in a range of $1 million to $5 million.

The sale-and-purchase move would have made money within a few days, as stock markets and the fund in question increased in value after Mr. Powell’s announcement. The investment would have then lost money as stocks sank again amid the deepening pandemic crisis.

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