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…
