Castle Securities is calling out pretty harshly this time; if inflation can't be contained, interest rate cuts are basically unlikely.

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Double warning: The Federal Reserve should raise interest rates, risking its credibility in fighting inflation
Castle Securities states that inflation risk is greater than the labor market, recommending the Federal Reserve to adjust its stance promptly.
April CPI year-over-year 3.8%, oil prices and the AI boom have driven inflation, interest rates are near neutral but inconsistent with strong economic expectations.
Former New York Fed Dudley warns that the Fed's credibility is damaged, long-term inflation expectations are rising, leaving almost no reason to cut rates, and concerns are heightened by the AI boom, debt issues, and independence disputes.
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