European Central Bank officials warned of risks in financial markets, saying a sharp correction could threaten financial stability.

ChainCatcher reports that, according to Jinshi, European Central Bank Governing Council member Pereira warned that a sharp correction in financial markets and crypto assets would be the primary short-term risk to financial stability. He stated that the central bank must retain room for maneuver to address potential shocks and emphasized that "price stability is the top priority." He added that current monetary policy is appropriate. Recent market volatility has seen the S&P 500 heading for its biggest drop since April.