Fundstrat’s Tom Lee has expressed optimism about the U.S. economy despite the ongoing government shutdown, citing two key factors that could drive investor confidence.

AI and Dovish Fed Could Spark Growth

In an interview with CNBC on Monday, Lee said massive investments in the artificial intelligence sector and the Federal Reserve’s dovish stance are “powerful tailwinds” for the economy.

The Fed’s 9-month pause on interest rate cuts until September kept the Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) below 50 for 31 consecutive months, Lee said.

Now the Fed’s dovish, which is basically a lifeline for the economy, he added.

He also ...