Financial conditions in the United States are more than two standard deviations below normal, according to the RSM US Financial Conditions Index.
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 credit to restore price stability, leading to tighter financial conditions around the world. The United States is no exception. Financial conditions in the United States are more than two standard deviations below normal, implying excessive volatility and risk being priced into securities and signaling slower growth, according to our proprietary RSM US Financial Conditions Index. To understand these rapidly changing financial conditions and what awaits, a series of snapshots shows why these forces won’t be changing anytime soon.