Chicago Fed National Financial Conditions Leverage Subindex
NFCILEVERAGE • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
-0.52
Year-over-Year Change
20.15%
Date Range
6/9/2006 - 8/1/2025
Summary
The Chicago Fed National Financial Conditions Leverage Subindex tracks the financial leverage and borrowing conditions in the U.S. economy. It provides critical insights into the financial system's risk and credit market dynamics.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This subindex measures the degree of financial leverage across different sectors, reflecting the ease or difficulty of obtaining credit and the overall financial system's risk appetite. Economists use it to understand potential systemic financial risks and credit market tensions.
Methodology
The index is calculated using a weighted combination of financial market indicators that represent leverage, credit conditions, and risk-taking behaviors across various financial instruments and institutions.
Historical Context
Policymakers and financial analysts use this index to assess potential economic vulnerabilities and inform monetary and regulatory decision-making.
Key Facts
- Lower values indicate easier financial conditions and increased leverage
- Tracks financial system risk and credit market dynamics
- Part of the broader National Financial Conditions Index
FAQs
Q: What does a rising NFCILEVERAGE index indicate?
A: A rising index suggests tightening financial conditions and increased financial system stress. It typically signals more challenging credit markets and potential economic constraints.
Q: How frequently is the NFCILEVERAGE index updated?
A: The Chicago Fed updates this index weekly, providing near-real-time insights into financial market conditions and leverage trends.
Q: How do financial institutions use this index?
A: Banks and financial institutions use the index to assess systemic risk, adjust lending strategies, and understand broader credit market dynamics.
Q: Can this index predict economic downturns?
A: While not a definitive predictor, significant changes in the leverage subindex can signal potential financial stress that might precede economic challenges.
Q: What are the limitations of the NFCILEVERAGE index?
A: The index provides a snapshot of financial conditions and should be used alongside other economic indicators for comprehensive analysis. It does not guarantee future economic outcomes.
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Citation
U.S. Federal Reserve, Chicago Fed National Financial Conditions Leverage Subindex [NFCILEVERAGE], retrieved from FRED.
Last Checked: 8/1/2025