The Federal Reserve’s long-awaited pivot toward easing monetary policy is almost here, with a September interest-rate cut now “a near certainty”, according to Jeremy Siegel, Wharton professor emeritus and WisdomTree chief economist.
And that’s just the beginning, he says.
In recent commentary, Siegel forecast three rate cuts before year-end, starting with a 25-basis point reduction at the September 16-17 meeting. He calls for the U.S. central bank to ultimately lower benchmark borrowing costs below 3%, arguing that the economy no longer requires restrictive real rates to maintain stability.
“The market got exactly what it needed last week: confirmation that the economy is slowing—not collapsing—and that the Federal Reserve has the green light to start cutting rates,” Siegel …