In his opening statement after the FOMC meeting on November 1 Chair Powell discussed Financial Conditions specifically. “ Financial conditions have tightened significantly in recent months, driven by higher longer-term bond yields, among other factors. Because persistent changes in financial conditions can have implications for the path of monetary policy, we monitor financial developments closely.” In response to a question Chair Powell noted that the FOMC pays close attention to changes in Financial Conditions and whether changes are long lasting or not. “ Obviously...
