Financial conditions have tightened more than the market shows, Powell says
Financial conditions seem to have tightened more than the U.S. benchmark indexes indicate, Federal Reserve Chair Jerome Powell said during Wednesday’s press conference.
“The traditional indexes are focused a lot on rates and equities, and they don’t necessarily capture lending conditions,” Powell said when asked what financial situation would warrant an interest rate cut, especially if credit conditions were to further tighten. Concerns of a credit crunch, which occurs when banks significantly tighten their lending standards, have grown amid the banking crisis.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
Login if you have purchased