Fed Hawkishness May Be Walking Back, Stocks Could Benefit

Fundstrat's Tom Lee believes that cooling inflation data and a shift in rhetoric from the Federal Reserve could benefit equities. In his view, this development is 'good for stocks.'

The catalyst for this change appears to be New York Fed President John Williams' comments on the forthcoming Personal Consumption Expenditures price index release, which is expected to show a dovish trend.

This, in turn, may give the Federal Open Market Committee (FOMC) room to 'walk back hawkishness,' according to Lee. The current policy is already considered restrictive, and Williams emphasized that policymakers have time to gather more information before making further decisions.