Jeremy Siegel: No more rate hikes

[steadyeddy]

Rate Hikes Are Done!

[roi2020]

Stocks for the Long Run!

[Chahta]

Hope he is right, but that's not what I am hearing and what the Fed said. If they are over we may be in a recession or close to it. If he is right then inflation should be close to 2% in June.


Powell thinks otherwise.

[steadyeddy]

The reality is two things: 1) inflation is not dis-inflating fast enough, and 2) stocks are rising higher. Neither one is what the Fed wants. But can they afford to raise much more on ST rates? Powell indicated maybe another 50bps...

...After that I suspect they will adopt Yield Curve Control to tame RE market.

[johntaylor]

Maybe Siegel is correct and Powell is jawboning?

[steelpony10]

    I think one needs to keep raising rates until the unemployment rate rises. Since the world economies may still be catching up to demand which was muted for a time it may take awhile if you factor in unknowns.

    I don’t see a world altering event other then AI like the internet that saved us from Stagflation. Of course it seems we’re closer to someone launching a nuke.

    As far as the stock market, this looks like a blip caused by slowing inflation probably from a lack of summer spending but apparently not slowing fast enough, so it has no legs. After the Sept-Oct slaughter the market begins anew Nov-May.

    

[uncleharley]

The Fed is in control. Don't fight the fed.

[Deleted]

We are entering a major election year and I believe there is major pressure to get inflation <3% y/y. The Fed is in control with added pressure.

[Chahta]

And then Powell had this to say to reiterate.

[steadyeddy]

Jawboning... The track record for the Fed in terms of their projections is abysmal.

[Chahta]

I don't believe Powell would bluff on raising rates. Only if the CPI dropped drastically or unemployment rose drastically a couple of months in a row he might back track.