With hawks from the Federal Reserve speaking out, the risk of asset price collapse may become a new obstacle to interest rate cuts.

According to Mars Finance, on November 21st, concerns about financial market stability, including the risk of a sharp drop in asset prices, are becoming a new topic of discussion among Federal Reserve officials regarding the timing and even the possibility of interest rate cuts. Federal Reserve Governor Lisa Cook listed a series of risks to the financial system, including the rapidly growing private credit market, hedge fund trading in the Treasury market, and the application of generative artificial intelligence in machine trading. Cook also hinted that she wouldn't be surprised if asset prices, currently at historical highs, collapsed. Cleveland Fed President Beth Hammark reiterated her opposition to further rate cuts, arguing that inflation remains too high, and stated that she believes loose financial conditions are another reason to oppose rate cuts. Federal Reserve Governor Michael Barr said on Thursday that the Fed needs to be cautious when considering further rate cuts. Chicago Fed President Austan Goolsby said he remains concerned about another rate cut in December. "Inflation progress "seems to have stalled, and if anything, there have been warnings of it heading in the wrong direction," Goolsby said. "That makes me a little uneasy."