Castle Securities and Dudley are both calling for the Federal Reserve to pivot, but their reasons are completely opposite—one thinks inflation can't be contained, the other fears a credibility collapse. The AI boom and debt issues are stirring the game even more, and the rate cut window is truly closing.

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Double warning: The Federal Reserve should raise interest rates, risking its credibility in fighting inflation
Castle Securities states that the Federal Reserve should adjust its stance as soon as possible, due to inflation risks being higher than the labor market.
April CPI year-over-year increased by 3.8%, driven by oil prices, the AI boom, and a loose financial environment, with interest rates approaching neutral.
Former NY Fed President Dudley warns that the Fed's credibility is damaged, with long-term inflation rising and almost no reason for rate cuts, as AI, debt, and independence issues intensify market concerns.
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