National Financial Conditions Index Stabilizes At -0.94

The Chicago Fed’s National Financial Conditions Index was a reading of -0.94 for the week ending December 20. This is unchanged from the prior week’s reading and suggests that financial conditions are looser than average. This is also the 5th week in a row that the index has been unchanged from -0.94.

The adjusted NFCI, which isolates a component of financial conditions uncorrelated with economic conditions to provide an update on financial conditions relative to current economic conditions, was a reading of 0.00. This is higher than the prior week’s reading of -0.03, indicating that financial conditions are tighter relative to economic conditions than the week prior, but indifferent on average than would be suggested by economic conditions.

NFCI3 600x375 National Financial Conditions Index Stabilizes At  0.94

The risk subindex was a reading of -0.91, indicating that financial conditions were tighter than the prior week’s reading of -0.92 but looser than average.

The credit subindex was a reading of -0.86 last week, indicating that financial conditions were unchanged from the week prior but looser than average.

The leverage subindex was a reading of -0.65 last week, indicating that financial conditions were tighter than the prior week’s reading of -0.66 butd looser than average.

NFCI Components2 600x375 National Financial Conditions Index Stabilizes At  0.94

The nonfinancial leverage subindex was a reading of -0.65 last week, indicating that nonfinancial leverage was higher than the prior week’s reading of -0.66 but still below average.

NFCI Nonfinancial2 600x375 National Financial Conditions Index Stabilizes At  0.94

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