Does the Cleveland Fed’s Systemic Risk Indicator Predict Stress?

Cleveland Fed’s Systemic Risk Indicator is Reliable, Timely, and Valid When Predicting StressThe Cleveland Fed’s systemic risk indicator (SRI) was developed in response to the financial crisis of 2007-2009 in the hope that it could provide regulators with advance warning of conditions that might warrant a corrective response.Q3 2020 hedge fund letters, conferences and moreIn this Economic Commentary, Cleveland Fed researcher Ben Craig provides a review of the SRI’s performance from 2001 to 2020, a period that predates and includes the financial crisis, to see how well it signaled times of know…

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