Analyst: Fed May Be Concerned About Tightening Policy Too Quickly

Odaily reports: KPMG Chief Economist Swonk said Warsh likely will not provide much more explanation about the decision at today's press conference. However, she speculated that policymakers may have been concerned that tightening policy too quickly could cause "damage" to the economy. She specifically noted that there are some "fragilities" in the AI boom. In mid-October, tech stocks did indeed experience a significant round of selling.

In addition, there have also been scattered reports that credit institutions have become somewhat more cautious when providing additional funding to hyperscalers to support their AI infrastructure buildouts—at least at previous valuation levels. (Jinshi)