The administrations choices are fairly binary now.

Inflate away the $40Trillion+ debt they can never pay back

Or

Hard default on the debt, and be the one holding the hot potato as the union breaks up.

Fed is trying to thread the needle between the two and keep the music playing as long as possible.

The way this administration works is that anyone in a decision making position has been swapped for a self-serving yes-man who will do whatever Trump wants. Anyone they can't replace who won't deliver is briefed against or investigated until they quit or can be fired. Facts that might influence the decision play no part in the process.

The easy acceptance of this authoritarian governing style has been one of the most damaging to the idea of democracy. America's democratic institutions have great marketing but many of us outside the country and not subjected daily to that marketing have long known it is an particularly weak form of democracy and open to corruption, demagoguery and populism. Americans have a susceptibility to authority and hierarchical normalisation, has left them open to this.

The purpose of a system is what it does.