Thursday, January 8, 2026

U.S. Financial Conditions Are Looser Now Than They Have Been In Four Years

This is part of the point of the post immediately below, Still Too Much Liquidity In The System: "Bluefin Tuna Sells for Record $3.2 Million at Tokyo Fish Market Auction"

Here's the National Financial Conditions Index from the Chicago Fed via the St. Louis Fed's FRED database. Lower is looser: 


And here is the Federal Reserve Bank of Chicago's NFCI page which breaks out the three components of the index, risk assets, leverage and credit, updated through yesterday, January 7:

https://www.chicagofed.org/research/data/nfci/current-data