Fed Frustrated Over Financial Conditions

Easing financial conditions challenge the disinflationary impact of rate hikes and QT

Highlights

• Easing financial conditions challenge the disinflationary impact of rate hikes and QT

• Equity market valuations only make sense against a 0% policy rate

• Declines in housing starts, IP and real retail sales don’t speak to a roaring economy

• With inflation back in focus, all eyes turn to Thursday's PCE deflator release

While We Were Sleeping