Tag Archives: St. Louis Fed Financial Stress Index

Three indexes of the Federal Reserve...calculate and report statistical measures of financial stress in the U.S. economy on a regular basis...[and] all three have returned to their pre-recession levels last seen in May 2007. [What does that mean for stock market valuations? Let's take a look.]

None of the three different statistical measures of financial stress released this week suggest any conditions in the financial markets that would indicate that the U.S. economy is in a recession already, and none of them are exhibiting any upward trends that would point to a pending recession. In fact, all three stress measures have been trending downward through 2012, indicating that there is less financial stress now than at the beginning of the year. [Take a look at what each has to say and judge for yourself.] Words: 571