Capital Markets Are 'Flashing Yellow': JPMorgan's Feroli

The video discusses the current state of financial markets, highlighting the tightening conditions in the IPO and high yield debt markets. It examines the potential risks in the credit market and the impact of economic slowdown. The discussion also covers the various channels through which monetary policy operates, such as the dollar's influence, mortgage rates, and the wealth effect, and how these factors contribute to slower economic activity.

What is the relationship between the Fed's tightening measures and the real economy?

In what ways is the mortgage rate effect impacting economic activity?