Despite a strong bounce in U.S. financial markets following better-than-anticipated inflation data for October, financial conditions remain tight. The risk to the economic outlook has not abated after one month of encouraging consumer price index data. Central banks continue to increase the cost of ... READ MORE >
financial conditions
Changes in Fed policy and their impact on the economy
After more than a decade of disinflation and the threat of deflation, the Federal Reserve is now dealing with persistent inflation resulting from a pandemic-induced supply chain shock, a surge in consumer demand and yet another oil shock. This has resulted in an abrupt shift in policy to restore price ... READ MORE >
Bond market update: Inflation’s toll on returns, investment and growth
Inflation is now the most significant factor in investment decisions. Until the Federal Reserve creates the conditions approximating price stability—defined as the core personal consumption expenditures deflator averaging 2% over a defined period—the economy will remain at risk. This will almost ... READ MORE >
RSM US Financial Conditions Index: Risk aversion returns
Financial conditions in the United States deteriorated again in May after a pause in late April. The recent selloff across equity markets is indicative of the policy shift at the Federal Reserve, which intends to tighten financial conditions to achieve price stability. While we continue to make the ... READ MORE >
RSM Canada Financial Conditions Index shows the return of risk
Risk is being reintroduced into Canada’s financial markets as investment decisions and monetary policy begin to pivot from interest rates at the zero bound. Though the rates are still far lower than in normal times, three-month Treasury bills have moved off recent lows, with the forward market now ... READ MORE >
RSM US Financial Conditions Index: Setting the stage for sustained growth
Manufacturers are expecting increased activity in the coming months, surveys by the regional Federal Reserve banks suggest. But perhaps more important in terms of productivity and global competitiveness, those manufacturers say they plan to increase capital expenditures and spending on ... READ MORE >
The new RSM US Financial Conditions Index shows a favorable investment climate
Financial conditions in the United States continue to be highly favorable for investment despite the recent rise in some asset classes, according to a new measure from RSM US. With the Federal Reserve maintaining its low interest rate policy to encourage economic activity, the risk being priced ... READ MORE >