Monetary policy has been effective at fostering
easier financial market conditions, even with short - term rates pinned at the zero bound.
Not exact matches
Effective forward guidance on interest rates causes
market participants to lower their expectations and uncertainty about future path of interest rates and to anticipate that
easier financial conditions will persist well in to the future.
Yet it's
easy to overlook the fact that
financial market conditions in October 1987 were more favourable than they are today.
Higher interest rates, falling stock prices and a weak dollar represent a tightening of
financial conditions — which have been very
easy for a long time, a key source of fuel for the long bull
market.
Amid signs of stronger economic growth and a pick - up in inflation, as well as
easier financial conditions, the Federal Open
Market Committee, the policy arm of the U.S. central bank, is expected to raise its key federal funds rate in March by a quarter percentage point to a target range of 0.75 % to 1.00 %, says Ellen Zentner, Morgan Stanley's Chief U.S. Economist.
Financial conditions are
easy, which is normal for the final few years of a bull
market.
When
conditions are «too
easy», one expects the
financial markets to tighten and stocks to fall.
Bears state that whenever
financial conditions were this
easy, the stock
market made a bear
market (in 2000) or a significant correction (in 2015).