TIP - Never Mind Jerome Powell? Bullish Analyst Predicts Over 3 Rate Cuts This Year Calls Recent Inflation Spike 'Statistical Aberration' | Benzinga
Federal Reserve Chair Jerome Powell sounded hawkish on Wednesday, stating it wouldn’t be appropriate for the central bank to lower the policy rate until it has more confidence in inflation moving sustainably toward the 2% target. Despite Powell’s stance, Tom Lee, a bullish analyst at Fund Strat, disagreed and suggested the possibility of more than three cuts this year.
Powell emphasized a data-dependent approach, noting, “Given the strength of the economy and progress in inflation so far, we have time to let the incoming data guide our decisions on policy.”
Appearing on CNBC, Lee attributed the fading hopes of rate cuts to January and February’s global inflation acceleration, which he deemed a statistical aberration due to poor seasonal adjustments.
“There’s just some really poor seasonal adjustment … that take place,” he said.
"3 cuts actually may be too low. There's a possibility for more than 3 cuts this year," says @fundstrat's Tom Lee as Wall Street giants @StevenACohen2 and @davidein offer contrasting views on the Fed's rate path. pic.twitter.com/D6tqsegKt8 — Last Call (@LastCallCNBC) April 3, 2024
Lee pointed out the significant drop in March ...