Tom Lee: If the Fed only cuts interest rates once more this year, the market will remain strong.

On September 26, Tom Lee, co-founder of Fundstrat and chairman of BitMine, stated that although the market is currently pricing in two rate cuts from the Fed this year, achieving just one rate cut may not necessarily be an unfavourable signal. Tom Lee mentioned that if the Fed decides to implement only one rate cut before the end of 2025, "the market will interpret this move positively, as they would prefer to see the Central Bank cut rates during strong economic conditions rather than weak ones." Following the lower-than-expected initial jobless claims reported on Thursday, market participants have slightly adjusted their expectations for the Fed's quarterly rate cuts. Tom Lee added, "We know that the Fed has been slow to act on easing policies due to estimated housing inflation factors, but the reality is they should have initiated rate cuts earlier. Therefore, we must remain cautious. When the Fed discusses this estimated effect, it does not mean we need to start a new rate hike cycle just because the data shows a lag. I think this is precisely why the market can see through the essence of the situation." (Jin10)