Frances Stacy says the bullish market narratives were that tariffs aren’t as bad as feared and trade resolves quickly, or that the Fed steps in. However, Powell’s comments yesterday took the latter off the table, so she argues markets are now even more focused on the tariff story. She looks at the bond market, including Japan selling U.S. Treasuries. The “leverage” the U.S. has is its enormous consumption, which powers GDP for many other countries, Frances adds.