--- title: "Federal Reserve officials reiterate financial stability risks, warning that asset prices may face significant corrections" type: "News" locale: "zh-CN" url: "https://longbridge.com/zh-CN/news/266811712.md" description: "Federal Reserve officials have recently emphasized the risks to financial market stability, warning that asset prices may face significant corrections. As the December interest rate meeting approaches, the decision-making path is complicated by data gaps caused by inflation, employment, and government shutdowns. Cook pointed out that the financial system faces new risks, including the expansion of private credit markets, high-leverage trading by hedge funds, and the use of generative artificial intelligence. Harmack opposed further interest rate cuts due to the risks posed by high inflation and loose financial conditions. The concerns of the two officials align with the Federal Reserve's meeting minutes, reflecting intense internal debate over interest rate cuts and labor market policy support" datetime: "2025-11-20T22:22:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/266811712.md) - [en](https://longbridge.com/en/news/266811712.md) - [zh-HK](https://longbridge.com/zh-HK/news/266811712.md) --- > 支持的语言: [English](https://longbridge.com/en/news/266811712.md) | [繁體中文](https://longbridge.com/zh-HK/news/266811712.md) # Federal Reserve officials reiterate financial stability risks, warning that asset prices may face significant corrections According to the Zhitong Finance APP, Federal Reserve officials have recently reiterated the risks to financial market stability in public speeches, warning that asset prices may face significant corrections. This rhetoric is becoming a new focal point in discussions about whether to continue cutting interest rates in the future. As the December meeting approaches, the decision-making path has become more complicated due to data gaps caused by inflation, employment, and the government shutdown. Federal Reserve Governor Lisa Cook did not clearly state the direction of short-term interest rate policy during her speech at Georgetown University on Thursday, but she pointed out that the financial system is facing new potential risks, including the rapidly expanding private credit market, high leverage trading by hedge funds in the U.S. Treasury market, and the accelerated use of generative artificial intelligence in automated trading. Cook stated that U.S. asset prices are at historically high levels, and she "does not rule out the possibility of an unusually large price decline." Although a drop in asset prices does not equate to financial instability, she believes "the likelihood of a significant correction is increasing." Cleveland Fed President Loretta Mester also expressed opposition to further rate cuts at another event that day, citing that inflation remains too high and that overly accommodative financial conditions pose risks. She noted that while rate cuts are sometimes seen as "insuring the labor market," this insurance may come at the cost of "higher financial stability risks." Mester also believes that the banking system is well-capitalized and that household balance sheets are robust, but she is closely monitoring hedge fund leverage levels and the growth trends in private credit. The concerns of the two officials align with the views disclosed in the minutes of the Federal Reserve's October meeting. The minutes revealed that several policymakers mentioned that asset valuations in financial markets are high and specifically warned that if the market's expectations for the prospects of artificial intelligence technology suddenly change, technology stocks could experience a disorderly and significant decline. These concerns reflect the intense debate currently taking place within the Federal Reserve regarding two major issues: whether continuing to cut rates would further deviate inflation from the 2% target, or whether the cooling of the labor market requires more policy support. The government shutdown has led to the absence of key economic data, making it more difficult for the Federal Reserve to assess the current economic situation. Data released by the Bureau of Labor Statistics on Thursday showed that employment increased more than twice the market expectation in September, but the unemployment rate rose to 4.4%. Due to the government shutdown, the next complete employment report will not be released until a week after the December meeting. After the data release, market traders still expect that as long as there is no significant deterioration in the labor market, the Federal Reserve is likely to remain on hold in December, delaying a 25 basis point rate cut until January next year ## 相关资讯与研究 - [Energy Prices Can Jolt China Inflation, But Relief Likely Fleeting if Demand Stays Weak](https://longbridge.com/zh-CN/news/281158005.md) - [St Louis Fed's Musalem: Need to verify the waning of tariff inflation](https://longbridge.com/zh-CN/news/281378975.md) - [Judge denies DOJ request to revive Federal Reserve subpoenas](https://longbridge.com/zh-CN/news/281654409.md) - [FED GOV BARR/FEDERALIST SOC: SUCCESSFUL WIDESPREAD ADOPTION OF STABLECOIN DEPENDS ON THE QUALITY OF FEDERAL AND STATE REGULATION STILL TO COME](https://longbridge.com/zh-CN/news/281232244.md) - [Logan Favors Rule Changes to Shrink Fed Balance Sheet](https://longbridge.com/zh-CN/news/281554329.md)