Tom Lee: If the Federal Reserve only cuts interest rates once this year, the market will still remain strong.

ChainThink report, September 26, Fundstrat co-founder Tom Lee stated that although the market currently prices in two more rate cuts from the Federal Reserve this year, only one rate cut may not be a negative signal. Tom Lee said that if the Federal Reserve decides to implement only one rate cut before the end of 2025, "the market would interpret this action positively, as they prefer to see central banks cutting rates when the economy is strong rather than weak." Due to the initial jobless claims data being lower than expected on Thursday, market participants have slightly reduced their expectations for the Federal Reserve's quarterly rate cuts.

Tom Lee added: "We know that due to the estimated housing inflation factors, the Federal Reserve has lagged in its monetary easing, but the reality is that they should have started rate cuts earlier. Therefore, we must remain cautious. When the Federal Reserve discusses these estimation effects, it does not mean that we need to start a new hiking cycle simply because there is a lag in the data. I think this is exactly what the market sees through." (Jin10)