** Price appreciation in China accelerating beyond reflected in indexes.
** Relationships present higher complexity involved in the moving of money and goods globally.
** Inflation sensors should be more placed globally.
** Fed is not likely to be brave suddenly after failed the test on Mar10th.
A signal of tightening credit in commercial banks of China was sent out in an increasingly clear environment in which prices, from commodities to terminal consumer goods, have been taking off.
While our models are struggling with complicated multiple-factors relationships involved in demand &supply of commodities, production, pricing &exportation of China's consumer goods, and price's global transition, many of our tests indicate that the price appreciation, delayed to transfer globally for some reasons, may be spreading outside China and that global holders of US treasury feel it.
Fairly saying, Fed should have been a little more patient to see how the inflation is transferred to US and how the $1400 check improve liquidity of business before intervene long term treasury market. However, unfortunately as we saw in 2019, Powell failed again to show us being able to be independent of things other than long term interest.