U.S. Financial Conditions Tighten Amidst Market Volatility

Financial conditions in the U.S. have tightened significantly since the start of the COVID-19 pandemic, according to data from ZeroHedge. The platform revealed that these conditions are even tighter than during one of the most rapid Fed rate hike cycles in history, 2022. This tightening is attributed to stock market pullbacks and rising credit spreads. ZeroHedge suggests that the economy may slow further as a result of ongoing trade tensions driven by President Trump’s tariff regime.