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Liquidity & Conditions

Are financial conditions tight or loose?
Financial Conditions (z)

How tight or loose overall US financial conditions are vs their own history.

How Chicago Fed NFCI + Adjusted NFCI — weighted z-scores of 105 measures, mean 0 / SD 1 since 1971.Source FRED (Chicago Fed)

macro_fci

How to read Above zero = currently tighter than average; ANFCI strips out the part explained by activity & inflation.

NFCI is a COINCIDENT / present-state index — it describes conditions now, it does not forecast them.

Net Liquidity (heuristic)

A widely-watched proxy for the dollar liquidity available to markets: the Fed balance sheet net of the Treasury's cash and reverse-repo drains.

How WALCL − Treasury General Account (WTREGEN) − overnight reverse repo (RRPONTSYD), normalized to $tn.Formula Net Liquidity = WALCL − TGA − RRPSource FRED (Federal Reserve) — derived

macro_net_liquidity

How to read Rising = more liquidity sloshing through markets; falling = drains pulling it out.

A LABELED HEURISTIC, not an official Fed series and not a mechanical market driver — read the level and its move descriptively.

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