**As seen in Macro Walk report 12/08/22, subscribe at cablefxm.co.uk/reports
U.S. financial conditions are less tight than where we were back in mid-March, when the Federal Reserve started its rate hike campaign and lifted the FFRT by 50 basis points
In other words, the Federal Reserve is about to have delivered around 400 basis points of tightening, however, actual monetary conditions do not reflect such work
We have seen risk assets rally, volatility remains relatively subdued, while bond and money market indicators do not show signs of stress
Tracking the state of monetary conditions could give us further colour to what's on Fed Chair Powell's mind as we head into the last FOMC meeting of the year
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