**As seen in Macro Walk report 08/26/2022, subscribe at cablefxm.co.uk/reports
Bloomberg Financial Conditions Indexes for the U.S. and EU continue to diverge this week. The latter fell this week by 70 basis points to -245, the U.S. equivalent remained unchanged at -22 points, almost neutral. The U.S. financial conditions index shows that despite the tightening from the FOMC, monetary sentiment is not slowing, and the Fed may be required to do more.
The Fed is priced in to deliver 132bps of further tightening by year-end, the ECB is expected to hike rates by an additional 145bps in 2022.
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