The St. Louis Fed’s Financial Stress Index for the week ended May 29 was down 0.236 point to -0.117, the first time below the neutral mark of 0 (zero) since -0.115 in the February 14 week. The index has been trending lower – if a bit unevenly – since the peak of 5.373 in the March 20 week. If financial markets are still reliant on central bank liquidity and credit facilities, those programs seem to have done the job of relieving stresses and getting functioning nearer normal.
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