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[The most recent one occurred during the pandemic in March 2020, when the Federal Reserve cut interest rates by 150 basis points to zero and kept them there for two years.]

This week, the U.S. stock market encountered a "Black Monday" at the opening, with seven major technology giants all plummeting. The market believed that the Federal Reserve's interest rate cut was too late, and some traders even bet that the Federal Reserve would announce an emergency rate cut.

Will the Federal Reserve choose to cut interest rates urgently? What is the logic behind the turmoil in the US stock market? What is the outlook?

Hu Jie, professor of practice at Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University, said in an exclusive interview with Yicai Global that the current panic in the US stock market is not enough to impress the Federal Reserve. Hu Jie worked as a senior economist at the US Federal Reserve Bank for many years, responsible for financial economic research and analysis and recommendation of financial policies.

"First, the Fed will not pay too much attention to asset prices, especially asset prices in the financial market. In contrast, real estate prices may attract more attention. The price of financial products is not a core indicator of the Fed's work." He explained, "If there is excessive turbulence or abnormal fluctuations in the financial market, the Fed may observe from the sidelines and smooth it out if necessary, but it usually does not pay attention to why the market falls."

He recalled to reporters that when he worked at the Federal Reserve, it was the era when former Federal Reserve Chairman Alan Greenspan was in charge. "The U.S. stock market was very active at that time, but Greenspan said it was 'irrational exuberance' and it had little to do with the Federal Reserve."