Castle Securities: Inflation poses "real risk" to the Federal Reserve and the market.

Castle Securities stated that inflation, rather than growth, has become the main risk in the market as the capital spending boom driven by artificial intelligence boosts economic prospects. Nohshad Shah, head of fixed income sales for Europe, the Middle East, and Africa at the bank, wrote in a report to clients that a more accommodative financial environment, investments in artificial intelligence, and a more robust labor market have increased the risk of recent oil price increases leading to broader price pressures transmission. This is "the real risk faced by the Federal Reserve and the market."