U.S. bond, equity markets remain tight ahead of FOMC meeting

Yahoo Finance Live’s Rachelle Akuffo breaks down the chart of the day.

Video Transcript

RACHELLE AKUFFO: All right, time now for our Chart of the Day. You're looking at the Bloomberg's Financial Conditions Index. Now, this index tracks the overall level of financial stress in the US bond and equity markets to help assess the availability and cost of credit. You can see on your screen that the index went from loose in the green to the tightest since March of 2020. Now, green shows accommodative conditions. Red shows the opposite. Now, tighter conditions-- this could be something for the Federal Reserve to watch on Wednesday when considering its rate hike decision.