Wharton Professor Urges Emergency 0.75% FED Rate Cut Now!

Key Points:

• Wharton’s Jeremy Siegel urges the FED rate cut by 0.75% and another 0.75% in September.
• Siegel believes these aggressive cuts will stimulate consumer spending and business investment, aiming to avert a recession.

Wharton professor and famous economist Jeremy Siegel implored the Fed rate cut aggressively now: “I’m calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting.”

Siegel’s call comes at a time of increasing economic uncertainty, inflationary pressures, and market volatility, which are keeping investors and policymakers awake at night. The professor’s recommendations that some resolute action be taken toward stabilizing the economy and boosting confidence in the financial system come at a very good time.

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Siegel’s Urgent Call 75 Basis Point Fed Rate Cut Now

Cuts of 1.5% points over two months will give real impetus to activity. If the reduced cost of borrowing increases consumer spending and business spending, as Siegel feels, that would dampen the risk of a recession. He said the aggressive measure was required to offset the current headwinds in the economy and boost a more full-blowout recovery.