On November 12, Neil Dutta, an analyst at Renaissance Macro Research, said the Fed had indeed been slow to act in fighting inflation; moreover, investors still underestimate how hawkish the Fed may need to be. Dutta noted that while fighting inflation is imperative, it also raises the risk that the Fed could “overdo it.” “Inflation tends to be a lagging indicator, and monetary policy also works with a lag,” Dutta wrote. “If Waller is taken as a barometer of the FOMC’s stance, then today’s situation is a warning: Looking ahead to 2027, excessive tightening has become the primary risk.”