Federal Reserve's Hamak: Further rate cuts could pose risks to financial stability.

Cleveland Federal Reserve Bank President Hamak warned on Thursday that further interest rate cuts at this time would pose broad risks to the economy. Given that inflation continues to rise above the Fed's 2% target, "lowering interest rates to support the labor market could prolong this period of high inflation and could also encourage risky behavior in financial markets," Hamak noted. She pointed out that current financial conditions are "quite loose" given rising stock prices and "easy" credit conditions, explaining that further reductions in credit costs under these circumstances "could support high-risk lending." (Jinshi)