Wharton business school professor Jeremy Siegel told CNBC that the Fed doesn’t need to hike more than 100 basis points because an economic slowdown is in sight.
Siegel added housing costs, which are a significant factor of core inflation, said that housing have recently"gone down by a record amount exceeding any six-month period."
Siegel said markets would prefer if Powell signals that the Fed would be watching upcoming consumer price index data, instead of"backward looking data." "I hope [Powell] recognizes that the amount of tightening that we've put in, and are expected to put in between now and year-end — at least 100 basis points — is very much slowing the economy," Siegel added.
Other key data, such as the August nonfarm payrolls slated to be released next week, is something Siegel said he will be closely watching. Latest data showedSiegel added that he's"disturbed" there isn't much discussion over what he called a"productivity collapse," calling it the biggest puzzle that the Fed needs to address in upcoming meetings.
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