Financial conditions indexes, such as the Chicago Fed's NFCI, are typically structured around a historical average baseline of zero. Positive index values indicate that financial conditions are tighter than average, meaning credit is less accessible, borrowing costs are higher, and market risk aversion is elevated, which tends to restrain economic growth. Conversely, negative values indicate that financial conditions are looser than average, reflecting ample liquidity, low borrowing costs, and robust credit availability, which generally supports economic expansion and asset price appreciation.