On May 27, Citadel Securities stated that amid rising inflation and a persistently overheated economy, the Federal Reserve should adjust its stance as soon as possible, or it may "fall behind the curve." The institution believes that current inflation, rather than the labor market, poses a greater risk to the U.S. economy.

Citadel Securities pointed out that after the Iran-U.S. conflict pushed oil prices higher, the U.S. April CPI increased by 3.8% year-over-year, marking the largest inflation increase since 2023. Meanwhile, the AI investment boom and loose financial environment are further stimulating economic growth. Their model shows that current interest rates are close to the "neutral rate," which does not align with market expectations of strong economic expansion.

Former New York Federal Reserve Chair Bill Dudley also warned that the Fed's credibility as an "inflation fighter" is at risk of being lost. He stated that U.S. inflation has been above the 2% target for over five years, and long-term inflation expectations are rising, with "almost no reason to cut interest rates" at present.

Dudley also mentioned that, against the backdrop of the AI investment surge, expanding government debt, and questions about the Fed's independence, market concerns about runaway inflation are intensifying. #股票交易挑战最高赢17000U