Wall Street famous bulls: US stocks will rebound for several weeks after the release of the Federal Reserve's September interest rate decision.

According to the analysis of Tom Lee, the research director of Fundstrat and a famous Wall Street bull, the stock market may experience a rebound lasting several weeks after the significant interest rate decision to be made by the Federal Reserve on Wednesday. Lee pointed out that the policy meeting of the Federal Reserve will be held on Tuesday and Wednesday, where central bank officials will discuss the next interest rate adjustment. The market generally expects the Federal Reserve to cut interest rates by 25 or 50 basis points, which would be the first rate cut in four years. He said, "There are some positive factors at play currently. We know that the Federal Reserve will cut interest rates. Given that inflation data supports a rate cut, and the labor market also needs some support, I believe this will give confidence to the market. I think we will see good market performance during and after the meeting in the next one to two weeks." Wall Street has been anticipating a rate cut for months, especially as the financial environment tightens and the economy shows signs of weakness. Despite strong economic growth, the labor market has been steadily slowing. According to data from the US Bureau of Labor Statistics, the number of new hires in July this year decreased by 3.7% compared to the same period last year. According to the CME FedWatch tool, the market sees a 61% probability that the Fed will cut rates by 50 basis points on Wednesday. However, Lee believes that as long as central bank officials assure the market of more rate cuts, stocks should rise, regardless of whether the rate cut is 25 or 50 basis points. Lee said, "A 25 or 50 basis point rate cut could have hawkish or dovish implications." He explained that if the Federal Reserve makes a significant rate cut, it could trigger concerns of an economic recession. "I think the key is whether Chairman Powell can convey this message: this is the beginning of a cycle, and they are confident that we are moving towards a return to neutral rates. Whatever decision they make, it is actually dovish." However, the outlook for an economic recession remains uncertain. Economists at the New York Fed predict that by August next year, the probability of the US economy entering a recession is 62%, slightly higher than last month. He added, "If FOMC members' discussions drag on too long, the market may worry about the risk of an economic hard landing. However, I believe the ultimate outcome will be positive." Lee also predicts that the market performance in 2025 will be strong. After the presidential election, volatility will tend to stabilize, providing another opportunity for strong performance in the stock market. Especially against the backdrop of the Federal Reserve's rate cut, the economic policies of the two presidential candidates also appear constructive. "In the next 12 months, I think investors should be confident," Lee said. "While there may be some volatility now, the outlook seems quite good."