Analysis: If volatility in the US stock market intensifies, it may force the Fed to cut interest rates.

Odaily News Reuters columnist points out that if concerns about an overly optimistic view of artificial intelligence continue to ferment, causing recent market fluctuations to evolve into more severe oscillations, then the financial stability risks triggered by asset prices' big dump may force the Fed to cut interest rates. Of course, this is not the benchmark scenario. Traditionally, the Fed does not intervene to soothe the market unless liquidity dries up and market functioning is impaired. Although market sentiment and performance have clearly deteriorated, we are still far from a crisis, especially after last Friday's rebound. However, this time, the Fed may not need to wait until the situation worsens to that extent to take action. The reason is that according to many economists' calculations, even some decision-makers admit that the current health of the 'real economy' is more dependent on Wall Street's wealth than ever before. (Jin10)