Cleveland Fed Financial Stress Index Down Over Past Year, Currently Signaling “Normal” Financial System Stress

Downloadable data now available for each of the CFSI’s 16 components reflecting six financial sectors

The Cleveland Financial Stress Index is a tool that allows policymakers, financial analysts, and investors to monitor the condition of financial markets. The CFSI has trended down over the past year and is currently signaling a "normal" level of stress in the financial system.

The CFSI also allows users to track levels of stress in each of the six financial submarkets represented in the index: real estate, securitization, credit, equity, funding, and foreign exchange.

For example, the composite index rose slightly in late July and through August as increases in stress levels in the equity and foreign exchange markets surpassed declines in the securitization, credit, and real estate markets.

The CFSI and its components are updated daily at 3 pm ET, enhancing the ability to track the reaction of markets to specific economic events. Downloadable data is now available for each of the 16 components and six financial sectors.

In addition to being a useful tool for financial analysts and investment professionals, the CFSI also allows regulators to monitor stressful episodes as they are building. Early detection is important because when significant stress occurs in multiple markets, overall financial stress can quickly amplify.

A snapshot of the current level and grade of the CFSI is available at www.clevelandfed.org, while more detailed information can be found here.

Federal Reserve Bank of Cleveland

The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that along with the Board of Governors in Washington DC comprise the Federal Reserve System. Part of the US central bank, the Cleveland Fed participates in the formulation of our nation’s monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations System-wide. In addition, the Bank supports the well-being of communities across the Fourth Federal Reserve District through a wide array of research, outreach, and educational activities.

The Cleveland Fed, with branches in Cincinnati and Pittsburgh, serves an area that comprises Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia.

Media contact

Doug Campbell, doug.campbell@clev.frb.org, 513.218.1892