I am left to wonder as to the extent to which this course of action was urged upon Mubarak by the USA.

I'm assuming that the US had no strong interest in domestic Egyptian policy. US aid was a straightforward bribe to bring military security to Israel; and the US made a deal with the partner in front of them, and Mubarak was a product of the armed forces. So they are extraordinarily well-funded, by the US, and any economic development that happens with US funds is strictly under the aegis of the Egyptian armed forces.

The rent-extracting classes of Egypt were OK with this. In order to prevent a social explosion in the under-classes, the MB were a handy way to keep the lid on.

_{It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II}