Castle Securities has urged the Federal Reserve to raise interest rates promptly to combat rising inflation risks, warning that the Fed may "fall behind the curve" if it delays action. The firm highlighted a 3.8% year-over-year increase in the U.S. Consumer Price Index (CPI) for April, marking the largest rise since 2023. Former New York Fed President Bill Dudley echoed these concerns, noting that U.S. inflation has surpassed the 2% target for over five years, with long-term inflation expectations climbing. Dudley emphasized that factors such as the AI investment boom, expanding government debt, and worries about the Fed's independence have heightened market fears of uncontrolled inflation. He argued that these conditions leave little room for rate cuts, suggesting that the Fed may need to adopt a more aggressive monetary policy to address the primary concern of inflation risk.