Falling Inflation Could Lead to Fed Rate Cut, Boost Stock Market – Tom Lee
Tom Lee, founder and head of research at Fundstrat Global Advisors, suggests that declining inflation may prompt the U.S. Federal Reserve to cut rates this year, potentially bolstering the stock market.
In a recent CNBC interview, Lee outlined several factors supporting the ongoing stock market rally.
Lee points out that the trajectory of inflation appears to be decreasing more rapidly than consensus expectations.
Additionally, he highlights a prevailing sense of caution among investors, with leverage in the market still below levels seen in October 2021 and approximately $6 trillion in cash reserves remaining on the sidelines.
Lee believes that as long as investors remain cautious and focused on potential risks, stocks could continue to rise despite prevailing concerns.
READ MORE: US Treasury Pushes for Tougher Regulations on Cryptocurrency
In addition to his insights on the stock market, Lee is notably bullish on cryptocurrency, particularly Bitcoin (BTC). He predicts that Bitcoin could surpass $150,000 within the next 12-18 months, citing increased demand from spot exchange-traded funds (ETFs) and improving supply dynamics due to the upcoming halving.
Lee also acknowledges the Federal Reserve’s shift towards dovish monetary policy and suggests that Bitcoin has already weathered significant regulatory challenges over the past 18 months, potentially paving the way for further growth.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
