🇺🇸⛔️ U.S. Financial Conditions Fall to Near 2022 Lows: Cable FX Macro
- Rosbel Durán
- Mar 18, 2023
- 1 min read
**As seen in Macro Walk report 03/17/23, subscribe at cablefxm.co.uk/reports
We saw monetary conditions decline across the board, the largest dip was seen in the U.S., an index constructed by Bloomberg fell by 72bps on the week to -88.2
Financial market stress tightened conditions to levels not seen since last year. At some point, the Bloomberg U.S. FCI reached -112, the lowest reading since October
The development goes in line with the Federal Reserve's monetary policy campaign, we have heard Powell reference financial conditions tightening as a predecessor of high rates filtering into the economy
As a reminder, the last time the FOMC met, Fed Chair Powell stated that financial conditions have tightened over the course of last year. The Bloomberg U.S. FCI was +33, meaning the indicator showed an easing environment in financial markets. It will be interesting how Fed Chair Powell reacts to this recent decline
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