Falling inflation still points to 20% gain in stocks despite hawkish Powell

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The rally in stocks won't be swayed by a hawkish Powell, as falling inflation still points to a 20% gain for the market this year, Fundstrat says

The rally in stocks isn't going to be derailed by a hawkish Federal Reserve, as falling inflation still points to a 20% gain for the market this year, according to Fundstrat's head of research Tom Lee.

In a note on Wednesday, Lee reiterated his bullish view on stocks despite Fed Chairman Jerome Powell's hawkish testimony before Congress on Tuesday.

"This testimony is not really changing anything as the Fed actual path is a function of what happens with inflation," Lee said."The forward path of inflation, of course, is not yet known but the leading indicators show future progress is in the works."

 

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