Huoxing Finance reports that on October 5, Tom Lee told CNBC: “I believe that before last week’s jobs report, the market was pricing in the most hawkish Fed scenario—expecting three rate hikes, including a 75% probability of a hike in October. But the jobs report ultimately came in softer than expected. In two weeks, we’ll get the September inflation report. In our view, we believe some one-off factors are fading, so I think inflation data over the next six months will be softer. This could not only prompt the Fed to pivot away from its hawkish stance but also allow bond yields to truly normalize, as uncertainty around inflation begins to ease. Moreover, I see plenty of signs: tech stocks hitting new highs and cryptocurrencies performing so strongly—these are unlikely under tighter monetary conditions. So I believe they are pricing in looser financial conditions in the future.”
