Tom Lee: Core PCE Could Fall 100 Basis Points Without Rate Hikes

Tom Lee posted on X platform, agreeing with Mark Zandi's view that the Federal Reserve does not need to immediately choose between two options and can wait. Goldman Sachs estimates that the supply shock driving core PCE higher currently stands at 1.75 percentage points and will weaken by 100 basis points to 0.75 percentage points by early 2027; without rate hikes, core PCE will fall by 100 basis points. He stated that when the market is positioned for bearish news, the market may rise after the event occurs.