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Analysis: Tightening conditions not yet frightening for Fed and co


Analysis: Tightening conditions not yet frightening for Fed and co
Reuters
3/10/2021
© Reuters/Chris Wattie
FILE PHOTO: The Federal Reserve building is pictured in Washington, DC
By Marc Jones and Sujata Rao
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LONDON (Reuters) - Rising Treasury yields, a dollar rebound and commodity prices at multi-year highs may be starting to feed into a tightening of global financial conditions, testing the resolve of central bankers to reverse the moves by providing additional support.
Financial conditions is the umbrella phrase for how exchange rates, borrowing costs, and equity swings affect the economy. Measuring them is an inexact science, but a range of indexes, or FCIs, exist to gauge day-to-day changes. ....

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