Are There Any Monetary Policy Implications?

Global financial conditions are continuing to tighten take some of the pressure off Powell to step up and do even more. The nature of the post pandemic economy has left the FOMC's focus squarely on the domestic situation and containing US inflation so that means that even if European yields for example continue to climb in response to a hawkish ECB it doesn't necessarily mean that treasuries are going to be rising one for one. Away from global monetary policy there's also been some interesting developments with the reopening of China and the implications for the direction of inflation both domestically and globally.