星球日报|11月 25, 2025 10:07
**[Analysis: If U.S. stock market turbulence intensifies, the Federal Reserve may be forced to cut interest rates]**
Odaily Planet Daily News – A Reuters columnist pointed out that if concerns about excessive optimism regarding artificial intelligence continue to ferment, leading recent market fluctuations to evolve into more severe turbulence, the financial stability risks triggered by plummeting asset prices may force the Federal Reserve to cut interest rates. Of course, this is not the baseline scenario. Traditionally, the Federal Reserve does not intervene to calm the market unless liquidity dries up or market functionality is impaired. Although market sentiment and performance have clearly deteriorated, a crisis is still far off, especially after last Friday's rebound. However, this time, the Federal Reserve may not need to wait until the situation worsens to that extent before taking action. The reason lies in the fact that, according to calculations by many economists—and even acknowledged by some policymakers—the current health of the "real economy" is more dependent on Wall Street's wealth than ever before. (Jin10)
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