Closing Bell: AI's Regulatory Divide, Dynasty Partners with Anthropic 9/15/26

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Scott Wapner (1:02)

All right, guys. Thanks so much.

SPEAKER_4 (1:03)

Welcome, of course, to Closing Bell.

Scott Wapner (1:05)

Scott Wapner live from Future Proof in Huntington Beach, California. Two stories top of mind here pretty much like they are everywhere. What's happening on the AI front and whether the Fed really is going to raise interest rates tomorrow. We'll ask our experts what they think on both accounts. We'll also speak to Financial Advisor, Cheryl Penny of Dynasty. His firm named a design partner for Anthropics New Move into Wealth Management. Before we get to that, let's show you the scorecard here with 60 to go in regulation. We have been mostly read. So much focus remains on that 10-year no yield moving above 5 percent. That is the highest level since 2007

Yes, we're watching oil and all things energy as well.

They are very much the driving forces of the trade in the market today. Our talk of the tape is what the markets are going to do no matter what the Fed does tomorrow.

On that note, I'm joined here at Future Proof by Tom Lee. He is Fundstrat's head of research at CNBC Contributor. So very good to have you here today. Thanks.

Tom Lee (2:06)

Great to see you, Scott.

Scott Wapner (2:06)

All right, so what do you think the Fed is going to do?

Tom Lee (2:09)

Well, the market is pricing a 91 percent chance of a hike, so I'd say that's a safe assumption. The Fed will hike.

The question in their minds is really going to be how the market reacts to their action.

Scott Wapner (2:22)

How do you think the market is going to react?

Tom Lee (2:24)

I think a hike, because it's priced in, is actually a relief. It's like a band-aid being pulled off, and I think there's a good chance that future hikes get priced out. In other words, it's a one and done, and it leads to a rally in yields, so yields fall, and I think it's the start of a big stock rally.

Scott Wapner (2:41)

Okay, we'll get back to that in just a moment. We had BlackRock's CIO of Global Fixed Income Rick Reeder on with me earlier today on Halftime, and he too said the Fed probably will hike, but shouldn't.

Rick Rieder (2:55)

I wouldn't because I think you're not going to really do much. I mean, talk about moving the funds rate 25 basis points.

Are you really going to do anything for inflation? What's driving inflation today is interest rate insensitive. Obviously, you've got war, you've got energy price, you've got education, insurance costs, health care. It doesn't really do much, so would I do it? What it does adversely impact, you look at the housing market that's frozen.

Scott Wapner (3:18)

Mr. Reeder also told me how he thinks that stocks will react and bonds for that matter. Listen to what he told me about that.

Rick Rieder (3:26)

I think the one day change is pretty hard. I think people need to see the Fed moving. And I think as long as you get, I think Josh said it was, I think is right. As long as you get behind it, I think the equity market will have an okay time with that.

Scott Wapner (3:41)

It sounds to me like you're in agreement with Rick. They will, but they shouldn't.

Tom Lee (3:45)

Yeah. I agree with Rick that it's probably ceding to market pressures, not that the Fed thinks that's the best course. Goldman had a great study showing that there's four things distorting PCE today. 1.7 percentage points are coming from portfolio fees, flash memory, tariffs and energy. In six months, just without Fed intervention, that's dropping 100 basis points. So, PCE is set to drop anyways.

I don't know if the Fed really needs to accelerate that process.