U.S. Financial Conditions Easiest on Record, Goldman Sachs Says
- Looser environment good for near-term economic growth
- Easing though could pose longer-term risk of asset bubbles
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U.S. financial conditions are the easiest they’ve been in more than a quarter century as stock markets scale new heights on hopes of an end to the Covid-19 pandemic, according to an index compiled by Goldman Sachs Group Inc.
The index, which dates back to 1990 and also takes account of the value of the dollar and interest rates, reached its loosest level ever last week. That came as financial markets have boomed, thanks to unprecedented support for the economy from the Federal Reserve and Congress.