CNBC Host: Concerns over bank bad debts may give the Federal Reserve a reason to cut rates earlier

Jinse Finance reported that as news of bank bad debts hit Wall Street, CNBC financial commentator Jim Cramer stated that this latest situation will pave the way for the Federal Reserve to cut interest rates, a move widely anticipated by investors. He said, "Today's market is indeed terrible, but at least we finally have a reason that will make the Fed eager to cut rates sooner—bank loan bad debts. Nothing prompts the Fed to act faster than credit losses, as that is a clear signal of an economic downturn." On Thursday, U.S. stock indices generally fell as investors' concerns over the health of regional banks' lending businesses intensified. Cramer pointed out that non-performing loans are an early warning signal, indicating that it is time for the central bank to ease monetary policy. The banking system has seen "enough problem loans" within a week, which is sufficient for the Fed to cut rates quickly without being overly concerned about inflation. He emphasized that lower borrowing rates can not only generally stimulate the economy but also make it easier for borrowers to avoid defaults. (Golden Ten Data)