Neil Dutta, chief economist at Renaissance Macro Research, warned on Tuesday that the Federal Reserve is still too optimistic about its ability to curb inflation and that the market may be too complacent. He also added that although investors still have doubts about the durability of AI trading, the risk that the Federal Reserve will go too far in its efforts to curb inflation is becoming an increasingly serious threat facing the stock market in 2027.

Neil Dutta, chief economist at Renaissance Macro Research, warned on Tuesday that the Federal Reserve is still too optimistic about its ability to curb inflation and that the market may be too complacent. He also added that although investors still have doubts about the durability of AI trading, the risk that the Federal Reserve will go too far in its efforts to curb inflation is becoming an increasingly serious threat facing the stock market in 2027.