The St. Louis Fed Financial Stress Index (STLFSI) measures the degree of financial stress in U.S. markets. The index is constructed from 18 weekly data series: seven interest rate series, six yield spreads and five other indicators. Each series captures some facet of financial stress. As the level of financial stress in the economy changes, the data series are likely to move together.
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.
The St. Louis Fed is now issuing a weekly news release of the STLFSI. To view past news releases, visit www.stlouisfed.org/news-releases. For an explanation of the data series used to construct the STLFSI, refer to www.stlouisfed.org/news-releases/st-louis-fed-financial-stress-index/stlfsi-key.