Tensions between the United State $USDC and Russia reached new heights this week after a fiery back-and-forth between former U.S. President Donald Trump $TRUMP

and Russian security official Dmitry Medvedev spilled into public view, sparking global concern over escalating threats.

The spat erupted after Trump $ETH

posted on Truth Social, warning that Vladimir Putin was “playing with fire” by deploying 50,000 troops to Ukraine’s Sumy region—a move Ukrainian officials fear signals a fresh offensive from the north.

Medvedev, who once held Russia’s presidency and now serves in a senior national security role, responded sharply on X (formerly Twitter), calling the potential outbreak of World War III the “only REALLY BAD thing” for Russia and expressing hope that Trump “understands this!”

Trump’s original post claimed he had previously prevented severe consequences in Russia and warned that Putin's current actions could have catastrophic outcomes. The exchange triggered an immediate reaction from Trump envoy Keith Kellogg, who criticized Medvedev’s remarks as "reckless" and irresponsible for a nation with global influence.

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Cracks in Russia’s Economic Armor: Wage Growth Slows

Amid the geopolitical storm, Russia’s domestic economy is showing signs of fatigue. The post-invasion financial surge that once fueled Putin’s approval is now fading, as wage growth slows and household incomes flatten.

According to a Financial Times analysis of online job postings, the rapid wage increases seen throughout 2023 have lost momentum. Between September and December 2024, salaries in new job ads rose 4.2%. But in Q1 of 2025, that figure slipped to just 2.2%.

Real income growth—factoring in income from savings and other sources—also dropped, from 8.3% in 2024 to 7.1% in early 2025, according to Rosstat, Russia’s national statistics bureau.

Economist Konstantin Nasonov noted that the data paints a strange picture: “The economy is clearly under stress, yet people still seem to have more cash than before. It’s counterintuitive—but it’s the result of how resources have been distributed during the war.”

FT's findings are based on a methodology from job platform Indeed, which uses real-time job listing trends to assess labor market direction. Economist Pawel Adrjan at Indeed explained, “When the pressure is on, companies tend to tweak offers for new hires before touching current staff—so this data is often the canary in the coal mine.”

Putin’s wartime strategy of using oil and gas revenues to flood the economy with military pay, government subsidies, and housing incentives sparked a short-lived boom. That surge drove incomes up through 2023 despite inflation hovering around 30% over three years.

According to surveys from Levada and the Bank of Finland, many Russians viewed 2023 as a surprisingly prosperous year. But a more recent study by independent research group Chronicles shows the mood may be shifting: 40% of Russians say their financial situation has worsened, and only 20% report improvement.

“The more financially squeezed people feel, the less inclined they are to support the war,” said Alexei Minyailo, co-founder of Chronicles.

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