Stealth Rate Raising

...one of the items [from the Fed's FMOC press release Wednesday] was tightening in domestic financial conditions coming out of the heightened risk premia stemming from the European debt crisis. Whether you look at the Kansas City Fed financial stress index or the one published by the St. Louis Fed, in the past two months we have endured a tightening in financial conditions of between 60-85 basis points. So it is as if the Fed has already raised rates three times.

---ibid