3 More broadly, it is notable that although the Fed has raised its target interest rate six times since December 2015 and has begun to shrink its balance sheet, overall U.S. domestic financial conditions have gotten looser, in part due to improving global conditions and central bank policy abroad.
Much of the discussion of the spillovers of U.S. monetary policy focuses on their effects on financial conditions in emerging market economies (EMEs). Some observers  2  See, for example, Adrian and others (2017) and the IMF’s most recent Global Financial Stability Report (2018) for discussion of the transmission of global risk shocks to domestic macroeconomic conditions.