Tom Lee poses a critical question to the Federal Reserve: Why continue to raise rates? Markets could rebound once the event concludes.

TechFlow reports on September 15 that Tom Lee, chairman of Ethereum treasury firm Bitmine, posted that he agrees with economist Mark Zandi's view that the Fed "does not need to choose between options and can simply wait."

Tom Lee further noted that the supply shock currently driving core PCE higher, which Goldman Sachs estimates currently impacts by approximately 1.75 percentage points, is projected to gradually fade by 100 basis points by early 2027, dropping to around 0.75 percentage points. Therefore, if core PCE is expected to naturally fall by 100 basis points even without rate hikes, why should the Fed raise rates? When markets price in bad news in advance, they may actually rally once the event occurs.