Tightening financial conditions and -LSB-...]
Still, the pound later found dip buyers and resumed its upward march before finding sellers later, likely because of unwinding by pound bulls ahead of Barnier and Davis» joint conference, as well as a reaction to the BOE's credit conditions survey for Q3 2017 since that showed that lenders expect unsecured consumer credit availability to contract at the fastest pace since Q4 2008, which hint at
tightening financial conditions.
As well, the dollar is currently strong, further
tightening financial conditions — and it could make them even tighter if fundamentals don't support the dollar rally.
While the federal funds target rate was stable, credit markets had been
tightening financial conditions since the beginning of that year.
The IMF cited growing trade tensions and dangers of a shift toward protectionist policies,
tightening financial conditions and geopolitical strains as potential downside risks.
The U.S. Federal Reserve (Fed) has suggested it's likely to remain on hold for the near future given Brexit - related uncertainty and
tightening financial conditions.
Yet a simmering US - China trade dispute has roiled markets in recent weeks and
tightened financial conditions, which could argue for going slower.
But an alarmingly rapid ascent of the US dollar has
tightened financial conditions and pushed inflation further away from the 2 % goal, all at a time when the expansion is strengthening but still fragile.
Dudley explained to the press that one reason to tighten monetary policy is to
tighten financial conditions, which were more loose than policymakers» expectations:
Given term premium suppression (via QE) reduced volatility and induced investors to buy risky assets to boost returns, a sustained rise in long - term interest rates would give investors more options to achieve yield targets, thus making risk assets appear less attractive and ultimately erode demands for yield and
tighten financial conditions.
Yet a simmering U.S. - China trade dispute has roiled markets in recent weeks and
tightened financial conditions, which could argue for going slower.
Jurrien continued, «Having said that, I expect the Fed to tighten more and faster than the market is currently pricing in, which could send real rates higher and
tighten financial conditions.
The stronger euro has
tightened financial conditions that typically lead to weaker growth (as measured by the PMI).
Not exact matches
«
Financial conditions will
tighten this year, and we can no longer say that investor sentiment and positioning is muted,» Mike Wilson, Morgan Stanley's chief US equity strategist, wrote in a client note.
We know that global economies are teetering on the edge and that US
financial conditions are
tightening (as seen in break - even rates).
«These (risks) include the possibility of a sharp
tightening of global
financial conditions, growing trade tensions, and geopolitical strains — while the outlook for oil prices remains subdued and highly uncertain,» the report said.
The Chicago Fed's
financial conditions index hasn't been this low since 1994, and the government's benchmark 10 - year yield actually has edged lower this year despite the Fed's
tightening.
LONDON, May 2 - The dollar consolidated gains on Friday after hitting a 3 - 1 / 2 month high in the previous session as investors waited for the outcome of a U.S. «Despite the moves we have seen in the dollar in recent days,
financial conditions haven't really
tightened noticeably but that may change if the rally continues,» said Manuel Oliveri, an FX strategist at Credit...
«Despite the moves we have seen in the dollar in recent days,
financial conditions haven't really
tightened noticeably but that may change if the rally continues,» said Manuel Oliveri, an FX strategist at Credit Agricole in London.
But AMRO said its outlook is not without risks as it warned of the potential impact of faster - than - expected monetary policy
tightening on global
financial conditions, and escalation of global trade tensions, on capital flows and borrowing costs.
While short - term funding costs are rising and
financial conditions tightening from very loose levels, corporate - credit spreads suggest no serious economic weakness or
financial contagion is stressing the system yet.
The Goldman Sachs
Financial Conditions Index shows conditions easing as the line gets lower, and here shows a sharp tightening — albeit from very accommodati
Conditions Index shows
conditions easing as the line gets lower, and here shows a sharp tightening — albeit from very accommodati
conditions easing as the line gets lower, and here shows a sharp
tightening — albeit from very accommodative levels.
Emerging markets have generally improving fundamentals, but could be vulnerable to sudden
tightening of global
financial conditions.
A decrease in the index indicates an easing of
financial conditions, while an increase indicates
tightening.
Right now with earnings growth very strong and the bond market already reflecting a fair amount of Fed
tightening (pricing in 5 rate hikes over the coming 2 years), my sense is that the stock market is in OK shape to withstand some
tightening of
financial conditions and not unravel in the process.
Recently proposed trade tariffs — in conjunction with
tightening interest rates and
financial conditions — could threaten to squeeze stock valuations in the coming months.
If the FOMC did not make this adjustment, the stronger dollar could result in an undesired
tightening of U.S.
financial conditions.
For example, in the fall of 2008, Taylor Rule prescriptions were well above the level of rates that was appropriate given the sharp and persistent deterioration in the economic outlook and the sharp
tightening in
financial conditions that occurred during that period.
In the past, policy uncertainty has been more likely to coincide with a significant spike in volatility when monetary and
financial conditions were
tightening.
Adding to the
tightening of
financial conditions, the U.S. dollar has advanced roughly 10 % from its August lows.
The market - led
tightening of
financial conditions generated serious tremors in emerging market economies.
Oil price volatility, trade tensions, geopolitical risk and a «sharp
tightening of global
financial conditions» are just a few of the potential pitfalls that lie ahead.
Caveats: If markets and investors overreact,
financial conditions could
tighten too much and choke economic growth.
The ECB explained this downgrade to its inflation forecast by citing global growth uncertainties, the general
tightening of
financial conditions and falling oil prices.
Some slowing has been expected, on account of the
tightening in
financial conditions which has taken place since the middle of last year.
On one hand, the ECB has tried to temper expectations into the event by saying nothing new will come of it but on the other hand the ECB Minutes» reference to EUR overshoot supports the idea of a dovish Draghi as
financial conditions tighten in Europe.
This is not uncommon, if we look back to 2013 to see an example of this, the Fed started talking about the quantitative easing taper in the middle of 2013, and by Sept 2013 the expectation was they were ready to go, but they held back for 3 more months because of the
tightening of
financial conditions.
Since the Fed started hiking rates up, markets and
financial conditions have not
tightened.
In her March 7th speech, Governor Brainard acknowledged that
financial conditions «have improved in recent weeks» after «
tightened somewhat» in recent months.
The longer it takes for expansionary fiscal policies to emerge, the more likely for
financial conditions to ease as investors pare expectations of near - term policy
tightening due to limited risk tolerance amid central bank inaction.
A sudden
tightening of
financial conditions could lead to market corrections, unsustainable debt, and capital flow reversals.»
Other things equal, the appreciation represents a
tightening of
financial conditions for firms in the traded sector of the economy, but it has occurred against the backdrop of a steady rise in the terms of trade and, over recent months, a brighter outlook for the world economy.
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.
Markets have been
conditioned to believe the Federal Reserve is sensitive to sudden
tightening of
financial conditions, but this might well now be a mistake.
Financial conditions at this stage do not seem to have been inhibiting the growth of credit and spending, although it is too early yet for the available credit data to reflect any impact from the recent policy
tightening.
The Abe administration still intends to increase the consumption tax in 2019; spring wage negotiations are underway; and given recent yen strength, it would be difficult for the BOJ to justify an abrupt change in policy as
financial conditions tighten.
Although
financial conditions have yet to
tighten in a material way, investors are clearly getting nervous about the Fed wrecking the party.
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I see an important role here for the new
Financial Policy Committee in ensuring that capital and liquidity regimes balance the need for strong banks with the need to avoid a pro-cyclical tightening of financial co
Financial Policy Committee in ensuring that capital and liquidity regimes balance the need for strong banks with the need to avoid a pro-cyclical
tightening of
financial co
financial conditions.
Supportive monetary and
financial conditions are a core part of our strategy, so we must prevent an unplanned
tightening undermining the recovery.