Tom Lee: Core PCE is expected to decline by 100 basis points without raising interest rates

Tom Lee agrees with Mark Zandi's viewpoint that the Federal Reserve does not need to choose immediately, it can wait. Goldman Sachs predicts that the supply shock driving up core PCE is currently 1.75 percentage points, and will weaken by 100 basis points to 0.75 percentage points by early 2027; Without interest rate hikes, the core PCE will decrease by 100 basis points. Tom Lee stated that when the market prepares for negative news, the market may rise after an event occurs. (Source: Federal Reserve)