Key facts
- Federal Reserve has released new data on US financial flows.
- The data is valuation-adjusted and based on measured holdings.
- Equity flows are shown to be modest relative to valuation changes.
The Federal Reserve has introduced a new dataset that offers consistent, valuation-adjusted estimates of US financial flows, derived from measured holdings. This data aims to provide a clearer picture of market dynamics by distinguishing between actual capital movements and changes due to asset price appreciation or depreciation. Early insights from this dataset suggest that equity flows have been relatively modest when compared to the significant shifts in equity valuations observed in the market.