Federal Reserve meeting minutes: Several participants emphasized the possibility of a disorderly decline in the stock market.
TL;DR
Fed meeting minutes reveal concerns about a potential disorderly stock market decline, particularly from AI reassessments. The SOMA manager advised halting balance sheet reduction to address repo market volatility risks.
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On November 20, the minutes of the Federal Reserve meeting showed that several participants emphasized the possibility of a disorderly decline in the stock market, especially in the event of a sudden reassessment of the prospects related to artificial intelligence.
The SOMA (Open Market Operations Account) manager recommended that the Federal Reserve halt its balance sheet reduction as soon as possible, as excessive volatility in the repurchase market poses a risk to the Fed's interest rate decisions and the Treasury market. (Jinshi)