While the Federal Reserve has been flat out hiking rates, trying to make up for their insistence on 'transitoty' inflation incompetence, Goldman Sachs assesses that financial conditions are not nearly as tight as they think.
Since the October CPI report (ICYMI: US October CPI +7.7% y/y vs +8.0% expected) GS says their "Financial Conditions Index" has "eased substantially":
A big component of the GS FCI is the behaviour of US stocks. The drop on stocks on Monday will have had the effect of tightening the FCI, at the margin. It won't unwound the past 3 weeks easing though.
