Fundstrat expert warns: Will the Fed have to "panic" before a new wave of inflation?

Tom Lee warns Fed may have to cut interest rates in panic

Over-tightening policy could cause the Fed to have an “accident”
Renowned analyst Tom Lee, Director of Research at Fundstrat, believes that the US Federal Reserve (Fed) is going too far in tightening monetary policy .

In a new interview on CNBC, he warned that the Fed could face a “panic” situation when it realizes it waited too long to react to signs of economic weakness.

The job and real estate markets are sending out danger signals.
According to Lee, the labor market is not as strong as it appears and the real estate industry is collapsing due to high interest rates.

He emphasized:

“Job hunting is becoming increasingly difficult, and the lagged effects of monetary policy could create a shock that the Fed cannot react to.”

He called it a “policy accident” that could force the Fed to pivot quickly.

The Fed may be forced to pivot in the face of recession
Lee warned that if the Fed continues to keep interest rates high with the goal of controlling inflation due to “supply shocks,” they could inadvertently strangle the economy .

At that time, the Fed will be forced to cut interest rates to save the situation , even if it is in a passive position.