Via a memo to Congress, the administration has announced that it has designated drug cartels as unlawful combatants and that it has authorized military operations against those cartels. Meanwhile, U.S. financial strains are deepening. Credit card delinquencies of 90 days or more have reached a 14-year high, driven by high interest rates, depleted pandemic savings, and inflation. Banks are bracing for losses, with defaults concentrated among younger and poorer borrowers, raising the risk of weaker consumer spending and a possible recession. Policymakers face a dilemma between easing rates and risking inflation or maintaining tight credit and worsening household distress. At the same time, President Donald Trump is weighing a farm bailout of at least $10bn, potentially funded by tariff revenues, to ease pressure on rural communities hit by trade disputes and rising costs. Monetary policy is also clouded by missing data. A government shutdown has suspended the release of official jobs figures, leaving the Federal Reserve to steer policy with limited evidence of the impact of its recent rate cut. Abroad, the administration is intensifying pressure. Washington has approved $51m in arms sales to Ukraine, offered $230m in security aid to Lebanon, and set strict conditions on Iran while Iran turns to Moscow. Meanwhile, India and China will resume direct flights, signaling tentative rapprochement.