FRED Adds Financial Risk Measurement Data from the Kansas City Fed

FRED has added 6 data series about preferences for and perceptions of financial risks reported by the Federal Reserve Bank of Kansas City.

• The Risk-On Risk-Off (RORO) Index uses daily data from asset markets in the United States and euro area to measure the variation in global investors' risk appetites. An index value larger than zero suggests investors are likely avoiding risk, whereas a negative value suggests investors are likely taking on more risk. More details are available here.

• The Kansas City Fed's Measure of Policy Rate Skew (KC PRS) is a daily measure of how financial markets perceive the balance of risks to short-term U.S. interest rates one year in the future. A positive value of policy rate skew indicates financial markets believe interest rates are more likely to end up higher than projected, whereas a negative value suggests rates could end up lower than projected. More details are available here.