Klarna Group Shares Slip After Fed Flags Sticky Inflation

Klarna Group PLC (KLAR) shares are trading lower on Wednesday afternoon after the Federal Reserve left interest rates unchanged at 3.50% to 3.75% for a third straight meeting, while signaling that inflation could remain firmer than previously expected. Here’s what investors need to know.

• Klarna (KLAR) stock is feeling bearish pressure. Why is KLAR stock falling?

Fed Says Economic Activity Remains Solid As Inflation Stays Elevated

The central bank said economic activity continues to expand at a solid pace, but noted job gains have stayed low and inflation remains somewhat elevated.

Investors appeared to focus on the Fed's updated economic projections, which showed policymakers now expect 2026 PCE inflation to reach 2.7%, up from a prior 2.4% estimate. The Fed also slightly raised its 2026 real GDP growth forecast to 2.4% from 2.3%, suggesting the economy may remain resilient even as inflation pressures persist.

The policy decision was not unanimous. Fed Gov. Stephen Miran dissented in favor of a 25-basis-point rate cut, highlighting some division within the central bank over the path forward. Meanwhile, the latest dot plot continued to point to one 25-basis-point rate cut by the end of 2026, unchanged from prior projections.

Klarna RSI Stays In Neutral Range

Klarna RSI has mostly stayed in the neutral range (30?70), indicating neither sustained overbought nor oversold conditions over the period.

Recent momentum shows a rebound from oversold levels below 30 back toward the mid-range, suggesting improving but still cautious buying interest.

Analyst Consensus On KLAR Stock Remains Buy

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $40.27. Recent analyst moves include:

• JP Morgan: Overweight (Lowers target to $20 on Feb. 20)
• UBS: Buy (Lowers target to $20 on Feb. 20)
• Wells Fargo: Overweight (Lowers target to $32 on Feb. 20)

KLAR Shares Slide Wednesday Afternoon

KLAR Price Action: Klarna (KLAR) shares were down 8.31% at $13.57 at the time of publication on Wednesday. The stock is trading near its 52-week low of $12.50, according to Benzinga Pro data.

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