St. Louis Fed Financial Stress Index
Financial stress (St. Louis). Credit.
Updated
What is it?
A score that summarizes 18 weekly data points on interest rates, fear and credit. Zero is average stress.
St. Louis Fed Financial Stress Index (18 weekly series). 0 is average stress; positive values indicate more stress than average.
Why does it matter?
Above zero, the financial system is more stressed than usual.
When should it be a concern?
It is a concern when the financial system is more stressed than normal. Crisis Monitor turns each reading into a score from 0 to 100 using these bands:
| Situation | Value | What does it mean? |
|---|---|---|
| Calm | ≤ -0.50 | Score 0: no stress |
| Watch | ≥ 0.00 | Score 33: starts to draw attention |
| Stress | ≥ 1.00 | Score 66: risk zone |
| Extreme | ≥ 4.00 | Score 100: like in the worst crises |
Between one band and the next, the score is interpolated.
Financial stress (St. Louis) in past crises
Since January 1994, its weekly low was -1.13 (Feb 2007) and its high was 9.67 (Oct 2008). The typical level (the median) is -0.21.
| Crisis | At the start | High during the crisis |
|---|---|---|
| Russia and LTCM 1998 | -0.15 | 1.20 (Sep 1998) |
| Dot-com bubble and 2001 recession | -0.01 | 2.02 (Sep 2001) |
| Global Financial Crisis 2007-09 | 0.72 | 9.67 (Oct 2008) |
| European debt crisis 2011 | -0.39 | 1.34 (Aug 2011) |
| 2015-16 market scare | -0.32 | 1.00 (Jan 2016) |
| Q4 2018 sell-off | -0.60 | 0.27 (Dec 2018) |
| COVID panic 2020 | -0.46 | 5.64 (Mar 2020) |
| 2022 bear market | -0.57 | 0.63 (Jul 2022) |
Weekly data. Crises that do not appear predate the series.
How does Crisis Monitor use it?
- Area: Credit and financial conditions (30% of the index). Whether companies and banks find it hard to borrow. When credit dries up, the trouble starts.
- When does it move? Moves with the crisis.
- Data frequency: weekly.
- Quick alarm: No.
The index combines 17 indicators. See the methodology to learn how it is calculated.
Data source
FRED, Federal Reserve Bank of St. Louis (STLFSI4). Data may arrive late and does not constitute financial advice.
Frequently asked questions
How is the financial stress index interpreted?
Zero represents the historical average stress. Negative values indicate calmer markets than usual and positive values, more stress than usual.
What data does it combine?
It summarizes 18 weekly series: interest rates, credit spreads and volatility measures. It is published weekly by the St. Louis Fed.