A Federal Reserve focused on supporting the economy through rate cuts is a robust bullish catalyst for U.S. small-cap stocks, according toSean Gallagher, global head of Lazard's small-cap equity platform.

In an exclusive interview with Benzinga, Gallagher reaffirmed his strong optimism that small caps will close the performance gap with large caps that has widened in recent years.

"The Fed is in 'pro-growth mode,' and easing financial conditions are very helpful for many parts of the economy," he stated.

"I think laggard areas like small caps are a lot more attractive." While Gallagher noted...