The Fed's first rate cut is still on pace for June with inflation dropping like a rock, Fundstrat's Tom Lee says

• The Fed's first rate cut is still on track to come in June, Fundstrat's Tom Lee said.
• He says that's because inflation is dropping "like a rock" in most measures.
• Yet investors are only pricing in a 57% chance of a rate cut by June, per the CME FedWatch tool. 

The Fed is still poised to issue its first rate cut in June as the pace of inflation continues to slow, according to Fundstrat's head of research Tom Lee.

Lee, who correctly called the stock market's 20% gain last year, says he expects the Fed to begin cutting rates less than two months from now. In a video for Fundstrat clients, he cited most recent inflation indicators as evidence  that prices in the economy are cooling, and pointed to three dovish signs.