Bonds & Rates
Home›Bonds & Rates›Economy›Standard Chartered questions Fed growth impulse amid t…
Standard Chartered questions Fed growth impulse amid tighter conditions
Analysts say the FCI-G index was highly accommodative in May 2026 and still supportive after the July FOMC despite equity sell-offs, a stronger dollar, and higher long-term rates.
FXStreet carried an assessment from Standard Chartered analysts Dan Pan and Steve Englander on how the Federal Reserve’s Financial Conditions Impulse on Growth, the FCI-G index, is shaping views on US growth.
They said the index was highly accommodative in May 2026 and remained supportive after the July FOMC, even though recent equity sell-offs, a stronger US dollar, and higher long-term rates have only moderately tightened overall financial conditions.
The analysts also tied these dynamics to how conditions could affect one-year-ahead US GDP growth projections, suggesting the growth impact from financial tightening may be less severe than investors might assume.
FXStreet added its broader market context, noting it is using analyst commentary to frame ongoing currency moves, including GBP/USD and EUR/USD developments during the same period.
Latest closeEUR/USD 1.151 ▼0.1%|GBP/USD 1.343 ▼0.2%