This post first appeared on FloatingPath
The Chicago Fed’s National Financial Conditions Index was a reading of -0.94 for the week ending December 20. This is unchanged from the prior week’s reading and suggests that financial conditions are looser than average. This is also the 5th week in a row that the index has been unchanged from -0.94.
The adjusted NFCI, which isolates a component of financial conditions uncorrelated with economic conditions to provide an update on financial conditions relative to current economic conditions, was a reading of 0.00. This is higher than the prior week’s reading of -0.03, indicating that financial conditions are tighter relative to economic conditions than the week prior, but indifferent on average than would be suggested by economic conditions.
The risk subindex was a reading of -0.91, indicating that financial conditions were tighter than the prior week’s reading of -0.92 but looser than average.
The credit subindex was a reading of -0.86 last week, indicating that financial conditions were unchanged from the week prior but looser than average.
The leverage subindex was a reading of -0.65 last week, indicating that financial conditions were tighter than the prior week’s reading of -0.66 butd looser than average.
The nonfinancial leverage subindex was a reading of -0.65 last week, indicating that nonfinancial leverage was higher than the prior week’s reading of -0.66 but still below average.
