After the two U.S. bank failures last month, the terms “tightening financial conditions” or “tightening credit conditions” have been used in interviews and articles frequently. Many analysts have commented that the market is doing the work of the Fed, or that bank tightening is doing the work of the Fed. Many believe because of the bank failures that the Fed will likely pause earlier than expected. But what do these terms mean? In this video, we will briefly discuss what these terms mean and why they’re important to the Fed and the markets.
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Watch here: https://youtu.be/uC5k7Bsgeog?si=gQgaAJlDBEmKEais