Goldman Sachs financial conditions index near its "easiest" levels of the past 2 years

Reuters reports an overnight note published by Goldman Sachs’ chief economist Jan Hatzius, noting that, “Our financial conditions index is now about 50bp below its November 2016 average & near the easiest levels of the past two years.”

Key Points:

If the Fed retains its ability to steer financial conditions, why have financial conditions eased recently despite ongoing hikes?

Fed policy-especially Fed policy communicated around FOMC meetings-only accounts for a relatively small part of the ups and downs of financial conditions

And other developments such as the sharp pickup in global growth have been helpful for US financial conditions by boosting risk assets while keeping the US dollar from appreciating sharply in response to higher short-term interest rates

And, thus on the outlook for the Federal Reserve.