Why the Fed does have to worry about the stock market's impact on the economy, according to Goldman Sachs

Drew Angerer/Getty Images; BI

• Another market plunge could impact US GDP growth and Fed policy, according to Goldman Sachs.
• The bank estimated that a 10% stock market sell-off could reduce US GDP growth by 45 basis points over the next year.
• Further declines in the stock market may prompt the Federal Reserve to cut interest rates to mitigate economic impact.

"The stock market is not the economy" is a common refrain on Wall Street.

However, according to Goldman Sachs...