“I think a soft landing is still possible — if the Fed sees the light,” Jeremy Siegel, University of Pennsylvania Wharton School professor emeritus, says during an interview on “Bloomberg Markets: The Close.”…(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Inflation Down, Fed Will Pivot Soon: Wharton’s Siegel
Inflation, as measured by consumer prices, has been on a downward trajectory in recent months, indicating that price pressures on goods and services are easing. This development has led many economists to predict that the Federal Reserve will soon shift its focus from controlling inflation to stimulating economic growth.
One prominent economist who shares this viewpoint is Jeremy Siegel, a finance professor at the Wharton School of the University of Pennsylvania. Siegel believes that the decline in inflation, combined with other economic factors, will prompt the Fed to pivot its policy stance sooner rather than later.
Siegel points to the fact that inflation has been consistently below the Fed’s target of 2% in recent months, suggesting that price pressures are not a major concern at the moment. In fact, the latest data shows that consumer prices rose by just 1.4% in November compared to the previous year, further supporting the argument that inflation is on a downward trend.
Furthermore, Siegel highlights the weakening labor market as another factor that will influence the Fed’s decision. With unemployment rates still elevated, wage growth has been slow, leaving little room for companies to increase prices without hurting demand. This combination of low inflation and weak job market conditions provides the Fed with ample justification to shift its focus towards promoting economic growth.
Siegel argues that the Fed’s approach to monetary policy will likely change in the coming months. Currently, the central bank is engaged in a massive bond-buying program and keeping interest rates near zero to support the economy during the pandemic. However, as inflation remains muted and the labor market struggles, Siegel believes the Fed will start tapering its bond purchases and gradually raise interest rates to foster a stronger recovery.
The anticipated shift in policy by the Fed has implications for businesses, investors, and consumers alike. For businesses, a pivot in monetary policy could mean that borrowing costs may rise, potentially impacting investment decisions. Investors may need to reassess their portfolios as interest rates move higher, potentially leading to shifts in asset allocations. And for consumers, rising interest rates could impact borrowing costs for mortgages, auto loans, and credit cards.
However, Siegel remains optimistic about the overall economic outlook despite these potential changes. He argues that a pivot in monetary policy will be a sign of economic resilience and confidence in the recovery. As long as inflation remains low and the labor market struggles, the Fed’s commitment to fostering growth through its policy adjustments should be seen as a positive move.
In conclusion, the recent decline in inflation and the ongoing weak labor market are driving expectations of a policy pivot by the Federal Reserve. Wharton’s Jeremy Siegel believes that the central bank will soon shift its focus from controlling inflation to stimulating economic growth, potentially tapering its bond-buying program and raising interest rates. Although this shift may have implications for businesses, investors, and consumers, it is ultimately a sign of confidence in the strength of the recovery.
Professor Seagull Fetterman Biden…..yo, someone get this patient back into the hospital….
I'm disturbed that these people think disinformation shouldn't be allowed on social media. Science is disinformation because it's based on theory not facts.
This guy has been saying the Fed will pivot for months. Well eventually he will be right.
That's ridiculous inflation is not down and in fact is under reported while inflation is still 2x fed rate
When I think of "dumb money" this guy certainly comes to mind.
junk news
This market has been benefitting options traders and large financial institutions that are playing both the "Buy" and "Sell" side of the markets. Many companies have reported "record breaking" earnings this year.
In the first quarter of 2022 alone, companies announced more than $300 billion in new repurchase authorizations, an all-time high. In 2021, repurchases totaled $880 billion just from companies on the S&P 500 index, and it's estimated the total will exceed $1 trillion in 2022.
Starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works
Out of touch professors are not seeing the inflation on the ground. Stats are generalized and manipulated figures that do not provide accurate picture of what is happening at any point in time!
Listening to this guy you can sense he's hoping for a fast fed pivot so his portfolio can climb up again. I've never seen this guy talk about the financial bubbles that the QE and zero interest rates have created.
Il a raison!!
Bloomberg do a chart comparison with current times and with 1970s, u will find something interesting. Charts are the basic life tools for an investor.
Jeremy is the new tom lee! way to go jeremy we need it, tech got crushed all year! ……keep leaning on the fed!
Classic case of delusional disorder
Food, housing and gas prices are still high. Ukraine war ending can help a lot. We shall see.
The market cycle actually has not met it balance, we continue onward round around and around while hanging tight for that tremendous victory on a colossal >support yet meanwhile we could constantly disregard the market promising and less promising times and remain completely contributed. Enormous thanks to Jeff Erno for assisting me with acquiring over 15btc in about a month and a half by carrying out his technique and following his guide<
I disagree with him, and the Fed should not pivot, it might have to slow the increases and stop them sometime next year, but rates should stay high for the next 2 years
How can they air this Bs ? Its soo wrong …such lies
How is this guy at Wharton , his student must be smarter then him
This professor keep telling the audience to fight against Fed , how many times this year market making the stupid challenge and all failed. Now the inflation entering into the stickiest part : labor cost. Amd how can he predict all the sudden inflation goes down and make Fed pivot? This guy seems holding tons of index call options and wanna pump the market to bail him out
A fucking home went up 50- 60% in the last 2 years.
This grandpa utters non sense