Analyst: Fighting Inflation Is Imperative, but the Fed Risks Overdoing It

TechFlow reported that on November 12, Neil Dutta, an analyst at Renaissance Macro Research, said the Fed has indeed been late in fighting inflation; moreover, investors still underestimate how hawkish the Fed may need to be.

Dutta noted that although fighting inflation is imperative, it also creates the risk that the Fed may "overdo it." "Inflation is often a lagging indicator, and monetary policy transmission also has time lags," Dutta wrote. "If Waller is viewed as a bellwether for the FOMC's stance, today's situation is a warning: looking toward 2027, over-tightening has become the biggest risk." (Jin10)

Source: TechFlow