Tom Lee: The Federal Reserve is not expected to raise interest rates or resume quantitative tightening this time

On July 29, Tom Lee posted on X platform that today's FOMC meeting is expected to keep interest rates unchanged. The team collated comments from 12 voting members since the June meeting, three of whom were hawkish, two doves and Warsh neutral. But on the other hand, FOMC meeting may announce the resumption of QT (quantitative tightening), the current monthly contraction rate is zero, this is equivalent to invisible interest rate hikes but do not start tightening policy, uncertainty of the new Fed or market visibility recovery after the announcement. Therefore, TomLee believes that the stock market may perform better after FOMC, especially AI bottleneck stocks such as Micron have fallen 41% from their highs, forward P/E has dropped to 5.372 times, lower than the 10-year average of 6.524 times, and valuation discount is significant.