Fundstrat
Fundstrat's Tom Lee’s Bold September Call
9/5/2025, 8:53:45 PM
Economic Summary
- Federal Reserve officials are signaling support for interest-rate cuts: Jerome Powell indicated this last month and Chris Waller reiterated it this week, implying a policy pivot that could ease financial conditions.
- Chris Waller, described as a favorite to be nominated the next Fed chair, said on CNBC the Fed should start cutting this month, increasing the perceived probability of an earlier-than-expected rate cut.
- The hosts expect September to be an 'up' month because they believe the Fed will cut for the first time in September; they note this timing has only occurred twice in the last 50 years (September 1998 and September 2024).
Bullish
- Fed likely to cut rates in September, which could drive an October rally into an 'up' September.
- Signals from Powell and Waller supporting cuts boost market sentiment and risk appetite.
Bearish
No bearish cases captured.
People mentioned
Jerome PowellChris Waller