Why is CPI so high, yet the Fed did not raise rates in October? The U.S. Treasury released its fiscal year 2026 report, showing that interest payments on U.S. debt reached a staggering $1.36 trillion for the year—an increase of 12% compared to the previous fiscal year. If rates continue to rise, U.S. debt interest costs will also climb, placing even greater pressure on the U.S. government’s finances. Although the Fed is independent, it cannot completely ignore the risks posed by U.S. debt. It’s important to understand that U.S. debt risk is not just a concern for the U.S. government—it’s tied to systemic risks affecting not only the entire United States but also the global financial system. In fact, @Wangduanniao once said something on Space that Brother Bee finds very insightful: “Don’t be fooled by appearances—they aren’t as divided as they seem.” During the pandemic, the Biden administration directly distributed cash payments to citizens. The Fed cooperated closely by cutting rates to reduce U.S. debt interest expenses and implementing QE to directly purchase U.S. Treasuries. Therefore, in an environment where U.S. debt interest payments are already so high, it’s extremely difficult for the Fed to sustain consecutive rate hikes. Since a rate increase just occurred in September, it’s unlikely there will be another in October—and possibly not even in December. This is why former New York Fed President Williams previously stated, “We may hike once this year, but no hikes are needed next year.” If the Fed halts rate hikes next year, it would likely be positive for both U.S. equities and crypto markets. As for rate cuts, unless there’s a major stock market crash, Brother Bee believes the earliest possible timing would be late next year.