Analysts Split on Fed Move, Sparking Debate Over Inflation Risks

The Federal Reserve raised its median forecast for core inflation to 3.1%, up from 2.5% in December, citing tariffs as a key factor, according to Benzinga. Analysts remain split, with some saying the Fed overstates inflation risks, while others argue its impact is critical. Jeffrey Buchbinder and Jeffrey Roach of LPL Financial said inflation is crucial to markets, warning it can slow growth, lift rates, and lower stock valuations. Some argue the Fed is overstating inflation and ignoring weakening demand, while others insist inflation’s market impact remains critical. Markets responded with mixed closes on Wednesday, while index futures fell on Thursday.