St. Louis Fed Financial Stress Index Rises for Fifth Week in a Row


Please note: Data values previously published are subject to revision. For more information, refer to the vintage series in ALFRED®.

The St. Louis Fed Financial Stress Index (STLFSI) measured -1.091 for the week ending May 29, 2015, up slightly from the previous week’s revised value of -1.094. The increase was the fifth in a row. Nevertheless, the index remains well below its recent peak of -0.902, which occurred during the week ending Jan. 16, 2015.

STLFSI Weekly Change graph

Over the past week, seven of the 18 indicators contributed positively to the weekly change in the index, unchanged from last week. The two largest positive contributions were made by the expected inflation rate over the next 10 years (BIR_10yr) and the Chicago Board Options Exchange Market Volatility Index (VIX). Nine indicators contributed negatively to the weekly change in the index, two more than the previous week. The largest negative contributions were made by the Merrill Lynch Bond Market Volatility Index (Mlynch_BMVI_1mo) and the yield on Baa-rated corporate bonds (BAA).

STLFSI Yearly Change Graph

Over the past year, 13 of the 18 indicators made a positive contribution to the index and five indicators made a negative contribution, the same as the previous two weeks. The two largest positive contributions over the past year were made by the Mlynch_BMVI_1mo and the BIR_10yr, while the largest negative contribution was made by the S&P 500 Financials Index (SP500_FI).

For an explanation of the 18 component variables in the STLFSI, refer to the STLFSI Key.

Contact Us

Laura Girresch
Office: 314-444-6166

The St. Louis Fed Financial Stress Index (STLFSI)

Link to STLFSI in FRED

The STLFSI measures the degree of financial stress in the markets and is constructed from 18 weekly data series: seven interest rate series, six yield spreads and five other indicators. Each of these variables captures some aspect of financial stress. Accordingly, as the level of financial stress in the economy changes, the data series are likely to move together.

How to interpret the index
The average value of the index, which begins in late 1993, is designed to be zero. Thus, zero is viewed as representing normal financial market conditions. Values below zero suggest below-average financial market stress, while values above zero suggest above-average financial market stress.

Note that the bar charts plot the change in the contribution from one week to the next or from the current week compared to the value 52 weeks earlier.

More information
For additional information on the STLFSI and its construction, see "Measuring Financial Market Stress" and the related appendix.

FRED (Federal Reserve Economic Data) is the main economic database of the Federal Reserve Bank of St. Louis.