The financial system serves as the engine of economic activity, transmitting monetary policy and determining credit availability throughout the economy. Our Financial Conditions Monitor tracks key indicators including bank lending standards, corporate bond spreads, stock market valuations, and mortgage rates to assess whether financial markets are supporting or constraining economic growth. By detecting early warning signs of financial stress or excessive risk-taking, we can identify potential threats to employment and economic stability before they emerge as broader economic problems. This monitoring helps ensure that financial markets support rather than undermine the goal of sustainable full employment.