Financial conditions in the U.S. loosened slightly over the past week and remain looser than would be expected at the current stage of the economic cycle, according to the new index from the Federal Reserve Bank of Chicago.
The bank’s National Financial Conditions Index reached -0.61 in the week to April 15 compared with -0.63 for the previous seven days, though level with the year-ago reading.
However, when adjusted for current economic conditions, the most recent reading of -0.36 compared with -0.32 a week earlier and -0.64 in the year-ago period.
The bank’s latest data offering is a compendium from 100 indicators of financial activity measuring risk appetite, liquidity and leverage across an array of markets. A positive reading indicates tight conditions, with a negative number pointing to a looser climate.