Fiscal Policy: Are We Heading for Easing?
The Fed’s Financial Conditions Indicator is leaning toward looser, which means the Fed may be on its way to loosening policies such as cutting interest rates or increasing liquidity.
🟢 Current Trend: A clear decline in the indicator after a period of tightening.
🟡 Expectation: If inflation remains under control, we may see continued easing to support the economy. However, if inflation returns to rise, the path may change toward tightening again.