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- A new bull market is forming as the Fed acknowledges that inflation falling, according to Fundstrat's Tom Lee.
- Lee pointed to Powell's surprisingly optimistic comments on Wednesday, when the Fed chief pointed to disinflation.
- That suggests the central bank will dial back its aggressive policy, which could spur a 20% rally in stocks, Lee said.
A new bull market is now underway, and stocks are on track to rise at least 20% this year as Federal Reserve Chair Jerome Powell admits inflation is falling, according to Fundstrat's head of research Tom Lee.
"The recent expansion in market breadth and broadening participation, in our view, validate a bull market is underway," Lee said in a note on Tuesday, pointing to the strong performance in stocks since bottoming in October of last year. "2023 is going to prove to be [the] year of 'more opportunity and less crisis."