St. Louis Fed Stress Index
Chart of the Week for May 25, 2018 - May 31, 2018
The Federal Reserve Bank of St. Louis (FRED) publishes a weekly index measuring the degree of financial stress in U.S. markets. FRED compiles 18 financial market variables including interest rate series, yield spreads, S&P 500 index levels, a stock volatility index, and other factors to calculate the Stress Index. Values above zero indicate above-average financial stress while values below zero indicate below-average financial stress. The chart above track the this index near month-end for May 2017 through April 2018.
After trading in a narrow range from May 2017 through November 2017, the Stress Index began to rise in December 2017 and reached a two-year high March 2018 before falling back in April 2018. For reference, the highest value recorded was around 5 in October 2008 during the Great Recession. Economists noted factors including equity market volatility, political discussions concerning trade, and rising U.S interest rates as contributing to the recent increases in the Stress Index.
Posted by: sarah_oz@yahoo.com
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