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On the radar: St. Louis Fed Financial Stress Index levels off at low stress readings

The St. Louis Fed Financial Stress Index declined a bit further to -1.197 in the February 22 week from -1.126 in the prior week, and was its lowest since -1.252 in the October 5, 2018 week. Whatever stresses were present in financial markets that pushed the index higher in November and December — mainly the stock market plunge — have now ebbed. Overall financial conditions are displaying no signs of strain. However, the pace of improvements have flattened out in recent weeks and will probably continue much the same for the near future.

 

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