Link: https://finance.yahoo.com/news/wharton-professor-jeremy-siegel-says-191800487.html
Excerpt:
The Wharton professor Jeremy Siegel has a big issue with the Federal Reserve’s aggressive interest-rate hikes in its bid to tame inflation, and he’s worried that the central bank is making the biggest mistake in its history and may provoke a steep recession.
Siegel said inflation is starting to come down significantly, but the Fed is still moving forward with its rate hikes.
He said it could be “one of the biggest policy mistakes in the 110-year history of the Fed, by staying so easy when everything was booming.”
…..
“I think the Fed is just way too tight. They’re making exactly the same mistake on the other side that they made a year ago,” Siegel added.
To Siegel’s point, the Fed has had a lousy record of accurately forecasting where it expects interest rates to be just a few months into the future.
….
“I am very upset. It’s like a pendulum. They were way too easy through 2020 and 2021, and now ‘we’re going to be real tough guys until we crush the economy,'” Siegel said of the Fed.
Siegel expects the Fed to “eventually see the light” as none of their recent predictions are likely to come true.
“I think they’re going to be forced to lower the rates much more rapidly than they think,” Siegel said, a move that could set up stocks for a potential recovery from their ongoing decline.
Author(s): Matthew Fox
Publication Date: 25 Sept 2022
Publication Site: Yahoo Finance