U.S. Stock Futures Are Higher As Powell States Necessary Steps Will Be Taken to Subdue Elevated Inflation

U.S. stock futures are higher.  Equity indexes bounced higher yesterday as Chairman Powell said that “necessary steps” will be taken to subdue elevated inflation.  This micro focused comment reiterated that the ultimate aim is to tighten monetary policy by hiking rates.  Goldman sees a 50-bps hike at the next two Fed meetings.  The 10y treasury yield is currently trading at 2.35%, its highest point since May 2019 and the curve is slightly steeper relative to last week.  Fighting continues in Ukraine and President Biden is traveling to Europe to meet with allies to discuss the ongoing conflict.  Markets are expected to whipsaw around potentially higher interest rates and the Ukrainian war.  European markets are trading higher and Asian markets ended higher.