US Financial Conditions Ease to Most Accommodative Since 1997

The Index of US Financial Conditions has climbed to roughly 1.29 points, marking the easiest financial conditions since 1997. The gauge tracks access to money across markets, incorporating interest rates, credit spreads, stock prices, the dollar, and broader borrowing conditions.

The latest surge has been driven by equity markets reaching all-time highs, while US corporate bond credit spreads remain near their tightest levels since 1998.

By comparison, the index was on the verge of turning negative during the March 2026 market selloff. Conditions were not even this loose during the 2021 meme stock frenzy.