This.
The only hope they have to paydown the debt is through inflation.

It's all oil.... core CPI was flat.... and actually came in under expectations.

What goes up must come down.
Nothing can keep growing forever.NOTHING.

I believe economic growth in a market economy trends upwards in the long run because of scientific advancement and innovation. Of course there will be periods of market corrections in the short run.

OK. Still not good.

The Nasdaq exited correction territory on Friday to wrap the best week of the year for the stock market.

The tech-heavy index rose 0.4% to extend its winning streak to eight sessions. The S&P 500 dipped 0.1% and snapped a seven-session winning streak. The Dow fell 269 points, or 0.6%. All three marked their best weeks of 2026.

The Nasdaq rallied 10% from a recent low to mark its exit from correction territory after 11 trading days. That's the quickest correction for the index since October 2011, according to Dow Jones Market Data.

Most of the market traded sideways heading into the weekend, as investors held their breath for talks between U.S. and Iranian officials, which are scheduled to start on Saturday in Pakistan.

Brent crude oil futures fell 0.8% to $95.20 a barrel. WTI crude was down 1.3% to $96.57. Both the international and U.S. benchmark marked their biggest weekly percent declines since 2020, according to Dow Jones Market data.

Markets have struggled late in the week since the start of the war, since investors are wary of potential negative weekend headlines. Stocks soared earlier in the week when President Trump announced a cease-fire with Iran. Subsequent headlines out of the Middle East have showcased the fragility of such a pause, especially as the Strait of Hormuz remains effectively closed.

Wall Street once again piled into chips and other stocks linked to the AI trade after CoreWeave announced a flurry of deals this week with big-name customers. Worries about CoreWeaves’s ability to pay back its debt are on the decline, as indicated by falling costs of insuring against a CoreWeave default.

Earlier in the morning, the March CPI rose 3.3% year over year, which was the highest inflation has risen in nearly two years. Markets mostly shrugged off the report since it was widely expected by economists. The core CPI, which strips out food and energy costs, rose at a 2.6% annual rate.

The yield on the 2-year Treasury note rose to 3.8%, while the 10-year yield was up to 4.32%.

“Our sense is that the next move by the Fed will almost unequivocally be to lower interest rates from here, from a somewhat restrictive place currently,” writes BlackRock’s Rick Rieder. “But since we’re witnessing such a large shock today, with an uncertain set of reverberations around it, waiting for a longer period of time to make those cuts could be in the offing.”

Though bets on an interest rate cut this year briefly jumped in the wake of the report, odds the central bank keeps the fed funds rate steady through the end of the year were up to 75.6%, compared to 71.1% on Thursday, according to the CME FedWatch Tool. Odds of a rate hike dipped to 1.2% from 1.5%.

“We don’t believe hiking rates to combat near-term inflation will be a tangible consideration,” Rieder writes. “Yet in the interim, we like staying conservative in our interest rate exposure, and we are comfortable with income producing assets, particularly at the shorter end of the yield curve.”

"Economics recommends neither inflationary nor deflationary policy. It does not urge the governments to tamper with the market’s choice of a medium of exchange. It establishes only the following truths:

By committing itself to an inflationary or deflationary policy a government does not promote the public welfare, the commonweal, or the interests of the whole nation. It merely favors one or several groups of the population at the expense of other groups.

It is impossible to know in advance which group will be favored by a definite inflationary or deflationary measure and to what extent. These effects depend on the whole complex of the market data involved. They also depend largely on the speed of the inflationary or deflationary movements and may be completely reversed with the progress of these movements.

At any rate, a monetary expansion results in misinvestment of capital and overconsumption. It leaves the nation as a whole poorer, not richer. These problems are dealt with in Chapter 20.

Continued inflation must finally end in the crack-up boom, the complete breakdown of the currency system.

Deflationary policy is costly for the treasury and unpopular with the masses. But inflationary policy is a boon for the treasury and very popular with the ignorant. Practically, the danger of deflation is but slight and the danger of inflation tremendous.

Ludwig von Mises"

I never saw a response to high inflation and high interest rates, my mined goes to the 1980’s.