Powell Needs to Stop Gaslighting Markets About Financial Conditions

The Fed's own indicators of financial conditions show a drastic loosening of conditions over the last 6 months, suggesting policy is not restrictive. The sooner the Fed acknowledges this, the better.

The Federal Reserve has introduced its own version of a Financial Conditions Index which they publish monthly (just released on 3/22 through February) that "can be used to gauge broad financial condi…