Definition
A single 0-100 score classifying dollar liquidity as Loose (below 33), Neutral, or Tight (above 67). Its spine is the net-liquidity flow — Fed balance sheet minus TGA minus ON RRP — smoothed to a 6-month-equivalent change and combined with an acute funding-stress override (SOFR-IORB spread, SRF usage). Credit and market-risk indicators are shown as context panels, not in the headline.
The DLI Score is computed in 4 steps: (1) Fetch raw data from FRED, Treasury, and NY Fed APIs. (2) Build the net-liquidity level — Fed balance sheet (WALCL) minus the Treasury General Account minus ON RRP, in $ trillions — then smooth it and take its 6-month-equivalent flow. A draining flow tightens the score; an expanding flow eases it. (3) Compute an acute funding-stress override from the SOFR-IORB spread and SRF usage, combine it with the flow impulse via a noisy-OR, and EWMA-smooth the result for stability. (4) Map to an absolute 0-100 headline: below 33 = Loose (risk-on), above 67 = Tight (risk-off). Credit (HY/IG spreads, FRA-OIS) and market-risk (VIX, USD, real yield) indicators are shown as context panels, not folded into the headline. DLI is one contemporaneous liquidity-stance score, not a forward-return forecaster. See the methodology page and docs/2026-05-DLI-CISS.md addendum 5 for the full derivation and validation.