The NFCI charts US financial conditions in money markets, debt and equity markets and the traditional and shadow banking systems. Positive values of the NFCI indicate financial conditions are tighter than average, while negative values indicate financial conditions that are looser than average. Why are the markets ignoring the Fed tightening? The policy was also in marked contrast to the Fed tightening in 1994, which was much sharper and, as a result, unnerved markets. Inflation this time is much lower, compared with the previous episodes of Fed tightening.

Source: Mint December 05, 2017 02:26 UTC