The Fed Is Done Raising Interest Rates As Inflation on Path Lower, Says Fundstrat’s Tom Lee
Fundstrat Global Advisors managing partner Tom Lee believes that the U.S. Federal Reserve will no longer raise its benchmark interest rate. In an interview with CNBC, Lee expresses his optimism about the market and inflation numbers. He points to the recent Consumer Price Index (CPI) report, which indicates that inflation is decreasing. Lee suggests that the Fed can breathe easier if core CPI reaches 0.2% or less over the next three months. However, Lee acknowledges that not all stock market traders share his optimism. He mentions that many investors have already turned bearish, despite the fact that there is still a significant amount of cash in the market and mortgage rates could potentially drop. Lee believes that if the Fed stops raising interest rates and the US 10-year treasury note remains at 4%, mortgage rates could drop to 5.5%, which would be stimulative for the market.
Key Points:
- Tom Lee of Fundstrat Global Advisors predicts that the Federal Reserve will no longer raise its benchmark interest rate.
- Lee points to the recent CPI report as evidence that inflation is on a downward trend.
- He suggests that if core CPI reaches 0.2% or less over the next three months, the Fed will have less pressure to raise rates.
- Lee acknowledges that not all stock market traders share his optimism and many have turned bearish.
- He believes that there is still a significant amount of cash in the market and mortgage rates could potentially drop, leading to stimulative conditions.
Hot Take:
Tom Lee’s prediction that the Fed is done raising interest rates aligns with his optimistic view of the market and inflation trends. While some traders are turning bearish, Lee believes that there is still potential for market stimulation if the Fed stops raising rates and mortgage rates decrease. Therefore, it will be interesting to see how these factors play out in the coming months and whether Lee’s predictions hold true.
By
By
By
By