[Analyst: Combating Inflation is Imperative, But the Fed May Overreact] According to Odaily Planet Daily, Renaissance Macro Research analyst Neil Dutta stated that the Federal Reserve has indeed lagged behind in its fight against inflation; furthermore, investors still underestimate the extent to which the Fed may need to adopt a hawkish stance. Dutta pointed out that while combating inflation is imperative, this also carries the risk that the Fed may "overreact." "Inflation is often a lagging indicator, and the transmission of monetary policy also has a time lag," Dutta wrote. "If Waller is considered a bellwether for the FOMC's stance, then today's situation serves as a warning: looking ahead to 2027, excessive tightening has become the primary risk."