The St. Louis Fed’s weekly Financial Stress Index fell to -1.336 in the April 19 week, the lowest since -1.394 in the January 26, 2018 week. Signs of strain in financial market continued to retreat for a fourth week in a row after markets got confirmation that the FOMC had put monetary policy on hold after the March 20 meeting statement and updates to the Summary of Economic Projections. If Treasury yields are rising, so are stock prices. There is greater confidence that the economy will avoid recession for the near future, as well as retreating concerns that the brief yield curve inversion on March 22 was a signal of a downturn.
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