Siegel: Inflation Under Control, Fed Should Prepare for Rate Cut in 2023 to Avoid Recession
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Famed economist Jeremy Siegel believes inflation is under control and the Fed's next move will be a rate cut, possibly as early as March 2023.
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Siegel says there is no deposit growth and liquidity is being "squeezed", so we won't have any more inflation.
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He cautions the Fed against staying hawkish for too long, as that could push the economy into recession.
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The yield curve is currently inverted, which Siegel says Powell should aim to "uninvert" by lowering short-term rates.
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While Q3 GDP grew 4.9%, Siegel warns Powell must remain "sensitive to the real data going down" and not just inflation.