Affirm Stock Falls Wednesday As Fed Signals Higher Inflation Outlook

Affirm Holdings Inc (AFRM) shares are trading lower Wednesday afternoon as investors weigh a fresh Federal Reserve policy decision that kept interest rates unchanged and signaled inflation may remain stickier than previously expected. Here’s what investors need to know.

• Affirm Holdings (AFRM) stock is feeling bearish pressure. Why is AFRM stock falling?

Affirm Falls As Fed Signals Higher Inflation Outlook

The Fed held its benchmark rate at 3.50% to 3.75% for a third straight meeting, while its updated economic projections showed higher expected PCE inflation for 2026 and slightly stronger GDP growth than in its prior forecast. Policymakers also kept their median year-end 2026 rate outlook unchanged, suggesting only limited room for additional easing.

The cautious macro backdrop appeared to pressure growth-oriented and rate-sensitive names, with broader equity indexes also moving lower after the announcement.

For Affirm, the combination of elevated inflation expectations, a still-restrictive rate environment and weaker appetite for higher-multiple technology stocks may have contributed to the afternoon pullback.

Affirm Analysts Keep Bullish Stance

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $85.88. Recent analyst moves include:

• Truist Securities: Buy (Lowers Target to $71.00) (Feb. 20)
• Baird: Initiated with Neutral (Target $55.00) (Feb. 20)
• Cantor Fitzgerald: Overweight (Maintains Target to $85.00) (Feb. 9)

AFRM Shares Slide Wednesday

AFRM Price Action: Affirm Holdings (AFRM) shares were down 6.01% at $44.70 at the time of publication on Wednesday, according to Benzinga Pro data.

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