St. Louis Fed Financial Stress Index
STLFSI4 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
-0.68
Year-over-Year Change
43.13%
Date Range
6/9/2006 - 8/1/2025
Summary
The St. Louis Fed Financial Stress Index (STLFSI4) measures systemic financial market stress by tracking the degree of financial market tension across multiple financial indicators. It provides economists and policymakers with a comprehensive gauge of potential systemic risks in the financial system.
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 index aggregates multiple financial market indicators to create a standardized measure of financial system stress, with values above zero indicating higher than average market stress. Economists use it to assess potential economic vulnerabilities and anticipate potential financial disruptions.
Methodology
The index is calculated using 18 weekly market indicators across seven different financial market segments, using principal component analysis to generate a normalized stress measure.
Historical Context
Central banks and financial regulators use this index to monitor financial system health and potentially inform monetary policy decisions.
Key Facts
- Measures financial market stress using 18 weekly indicators
- Zero represents normal market conditions
- Positive values indicate increased financial system tension
FAQs
Q: What does a positive STLFSI4 value mean?
A: A positive value indicates higher than average financial market stress, suggesting potential economic challenges or market volatility.
Q: How often is the STLFSI4 updated?
A: The index is typically updated weekly, reflecting the most recent financial market conditions.
Q: What financial segments does the index cover?
A: The index incorporates indicators from seven different financial market segments, including equity, credit, funding, and volatility markets.
Q: How do policymakers use this index?
A: Central banks and financial regulators use the STLFSI4 to assess systemic financial risks and potentially inform monetary policy or regulatory interventions.
Q: What are the limitations of the Financial Stress Index?
A: While comprehensive, the index is a retrospective measure and cannot predict future market movements with absolute certainty.
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Citation
U.S. Federal Reserve, St. Louis Fed Financial Stress Index [STLFSI4], retrieved from FRED.
Last Checked: 8/1/2025