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Tuesday, May 24, 2022

“Financial Conditions”

The Fed will be focused on “financial conditions” to the extent that they impact the outlook for employment and prices.
What does that mean? What “financial conditions” are they watching for?
In the simplest terms, bonds and stocks. The bond market is a hundred trillion dollars. The stock market is thirty five trillion dollars. Problems in these markets can create problems in the real world if they’re left to fe…

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