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On the radar: St. Louis Fed Financial Stress Index dips to five-month low, but data before yield curve inversion

The St. Louis Fed’s Financial Stress Index dipped to -1.283 in the March 22 week, its lowest since -1.288 in the September 21, 2018 week. The timing of the data does not include the inversion of the yield curve on March 23. However, financial markets appear to have taken the event in stride after initially being startled. It may be a signal that the risks of recession are higher, but it is by no means definitive and other signals are not flashing red.

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