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On the radar: St. Louis Fed’s Financial Stress Index remained low in week ended December 27

The St. Louis Fed’s Financial Stress Index continued at lows not seen in over two years in the December 27 week. The index was up a bit to -1.400 after falling to -1.431 in the prior week. With movements in Treasury yields small and levels stable, and equities markets remaining near record highs, signs of stress are hard to find. Recession fears have abated as expectations for sustained modest growth have settled in.

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