THE FED'S MINUTES ALERT AI TO THE EQUITY VALUATION RISK

THE FED MINUTES NOTED THAT SOME PARTICIPANTS WERE CONCERNED ABOUT THE VULNERABILITY OF AI-RELATED INFRASTRUCTURE FINANCING AND CONSIDERED THAT THE HIGHER VALUATION OF SHARES BY AI-RELATED ENTERPRISES REFLECTED THE MARKET ' S OPTIMISTIC JUDGEMENT ABOUT LONG-TERM PROFITABILITY PROSPECTS. A LOWER MARKET ASSESSMENT OF THE PROFITABILITY OF THESE ENTERPRISES COULD TRIGGER A RE-PRICING OF ASSET PRICES, A TIGHTENING OF THE FINANCIAL ENVIRONMENT AND PRESSURE ON RELEVANT FINANCIAL INSTITUTIONS. IN ADDITION, TWO PARTICIPANTS DISCUSSED THE IMPACT OF PRICE FLUCTUATIONS ON THE UNITED STATES TREASURY DEBT MARKET ON THE FINANCIAL SYSTEM AND WAYS TO REDUCE THE LIKELIHOOD OF SUCH INCIDENTS。