Search Banking Research Events Education Region & Community Careers About Us Last Updated: 11/24/21 National Financial Conditions Index (NFCI) The Chicago Fed’s National Financial Conditions Index (NFCI) provides a comprehensive weekly update on U.S. financial conditions in money markets, debt and equity markets and the traditional and “shadow” banking systems. Because U.S. economic and financial conditions tend to be highly correlated, we also present an alternative index, the adjusted NFCI (ANFCI). This index isolates a component of financial conditions uncorrelated with economic conditions to provide an update on financial conditions relative to current economic conditions. The NFCI and ANFCI are updated on a weekly basis at 8:30 a.m. ET on Wednesday, and cover the time period through the previous Friday. When a federal holiday falls on a Wednesday or earlier in the week, the NFCI and ANFCI will be updated on Thursday (release dates). Latest NFCI Release Index Suggests Financial Conditions Tightened Slightly in Week Ending November 19 The NFCI ticked up to –0.63 in the week ending November 19. Risk indicators contributed –0.28, credit indicators contributed –0.24, and leverage indicators contributed –0.11 to the index in the latest week. The ANFCI also ticked up in the latest week, to –0.67. Risk indicators contributed –0.41, credit indicators contributed –0.19, leverage indicators contributed –0.07, and the adjustments for prevailing macroeconomic conditions made a neutral contribution to the index in the latest week. The NFCI and ANFCI are each constructed to have an average value of zero and a standard deviation of one over a sample period extending back to 1971. Positive values of the NFCI have been historically associated with tighter-than-average financial conditions, while negative values have been historically associated with looser-than-average financial conditions. Similarly, positive values of the ANFCI have been historically associated with financial conditions that are tighter than what would be typically suggested by prevailing macroeconomic conditions, while negative values have been historically associated with the opposite. Data and Background Notes: This figure plots the NFCI, along with contributions to the index from the three categories of financial indicators (risk, credit, and leverage). The contributions sum to the overall index. Notes: This figure plots the ANFCI, along with contributions to the index from the three categories of financial indicators (risk, credit, and leverage) and from the macroeconomic adjustments. The contributions sum to the overall index. Background Video Background Slides More about the NFCI Like the Chicago Fed’s National Activity Index (CFNAI), the NFCI is a weighted average of a large number of variables (105 measures of financial activity) each expressed relative to their sample averages and scaled by their sample standard deviations. The ANFCI removes the variation in the individual indicators attributable to economic activity and inflation before computing the index. For details, see Chicago Fed Letter No. 386. Contact Us Scott Brave (312) 322-5784 E-Mail Subscribe Enter your email address to receive notifications when new NFCI data become available. Email Address Submit Related Topics NFCI Current Data NFCI Background NFCI Release Dates FAQs Press Release Technical Report On This Site Introducing the Chicago Fed’s New Adjusted National Financial Conditions Index Detecting Early Signs of Financial Instability Federal Reserve Policies and Financial Market Conditions during the Crisis Monitoring Financial Stability: A Financial Conditions Index Approach Gathering Insights on the Forest from the Trees: A New Metric for Financial Conditions On The Web Calibrating Macroprudential Policy to Forecasts of Financial Stability Diagnosing the Financial System: Financial Conditions and Financial Stress Banking Research Events Education Region & Community Careers About Us Contact Us Newsroom Museum Subscribe Style Guide Follow Us The Fed Apps Our Values Integrity Respect Responsibility Excellence Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322 Copyright © 2021. All rights reserved. Please review our Privacy Policy | Legal Notices } } } } } }