BlockBeats News, September 26th, Tom Lee, Co-founder of Fundstrat and Chairman of BitMine, stated that although the market is currently pricing in two more rate cuts by the Fed this year, a single rate cut may not necessarily be a bearish signal. Tom Lee mentioned that if the Fed decides to cut rates only once before the end of 2025, “the market will interpret this move positively because they would prefer to see the central bank cutting rates during a strong economy rather than a weak one.” Following the lower-than-expected initial jobless claims data released on Thursday, market participants have slightly lowered their expectations for a quarterly Fed rate cut.
Tom Lee added: “We know that due to the estimated lagged housing inflation factor, the Fed is behind the curve in easing, but in reality, they should have started rate cuts earlier. Therefore, we must remain cautious. When the Fed discusses this estimated effect, it does not mean we should start a new rate hike cycle just because the data shows a lag. I believe this is why the market can see through the essence.” (Jinshi)
