Fed Index Shows First Tightening Bias Since 2007

The video discusses a new indicator designed to measure the Federal Reserve's bias towards tightening or easing monetary policy. It combines the Taylor rule with financial conditions to provide insights into the Fed's stance. The indicator currently suggests a tightening bias, influenced by factors like unemployment, inflation, and financial conditions. The discussion also covers the impact of global events, such as Brexit, and the balance sheets of major central banks like the Fed, ECB, and BOJ. The video concludes with predictions about future monetary policy actions.

What was the significance of the index indicating a tightening bias for the first time since 2007?

What potential effects of Brexit on the financial conditions index are discussed in the text?