Financial conditions have eased to levels seen before the Fed started raising rates, but the Fed is not going to worry much about the ongoing rise in the S&P500 and tightening of credit spreads because what matters for the inflation outlook is the mortgage rate, which continues to put downward pressure on housing inflation, see charts below.
![](https://apolloacademy.com/wp-content/uploads/2023/01/013123-Financial-Conditions-1024x576.jpg)
![](https://apolloacademy.com/wp-content/uploads/2023/01/013123-Housing-Inflation-1024x576.jpg)