Core Viewpoint - Federal Reserve officials are increasingly concerned about financial market stability risks, warning of potential significant asset price corrections as discussions about future interest rate cuts intensify [1][2] Group 1: Financial Market Risks - Federal Reserve Governor Cook highlighted new potential risks in the financial system, including the rapid expansion of private credit markets and high leverage in hedge fund trading in U.S. Treasury markets [1] - Cook noted that U.S. asset prices are at historical highs and does not rule out the possibility of "abnormal scale price declines," indicating an increasing likelihood of significant corrections [1] - Cleveland Fed President Harmack opposed further rate cuts, citing persistently high inflation and the risks posed by overly accommodative financial conditions [1] Group 2: Economic Data and Decision-Making - The recent government shutdown has led to missing key economic data, complicating the Fed's assessment of the current economic situation [2] - The Labor Department reported that September job growth exceeded market expectations, but the unemployment rate rose to 4.4%, indicating mixed signals in the labor market [2] - Market traders expect the Fed to likely hold rates steady in December unless there is a significant deterioration in the labor market, with a potential 25 basis point cut postponed until January [2]