Federal Reserve Harker: Further rate cuts could bring financial stability risks.

Cleveland Federal Reserve Bank President Hamaek warned on Thursday that further interest rate cuts could bring broad risks to the economy. Given that inflation has remained persistently above the Fed's 2% target, "lowering rates to support the labor market could prolong this period of high inflation and also encourage risky behavior in financial markets." Hamaek pointed out that in the current financial environment, with rising stock prices and "easy" credit conditions, the current financial environment is "quite loose." She explained that further lowering credit costs in this situation "could support high-risk loans."