Easy US Financial Conditions Are Masking ‘Anemic’ Credit

I’m Chris Anstey, an economics editor in Boston and today we’re looking at US financial conditions and the Fed. Send us feedback and tips to ecodaily@bloomberg.net or get in touch on X via @economics. And if you aren’t yet signed up to receive this newsletter, you can do so here.

Federal Reserve Chair Jerome Powell explained last October that monetary policy works through the channel of financial conditions, a broad term that includes a mix of asset prices and interest rates. As that responds to Fed actions, they shape the economy, including jobs and inflation.