Fed Urged to Cut Base Rate by 75bp by Famous Economist Jeremy Siegel
CryptoNewsTerminal Staff05 Aug, 2024
Fed Urged to Cut Base Rate by 75bp by Famous Economist Jeremy Siegel
Jeremy Siegel, a renowned economist and professor at the Wharton School, recently appeared on CNBC and made a compelling case for the US Federal Reserve (Fed) to drastically reduce its base rate. He proposed an emergency cut of 75 basis points (bp), followed by another 75bp reduction at the upcoming September FOMC meeting. Siegel emphasized that these cuts should serve as a minimum and that the Fed should ultimately lower rates to a range of 3.5% to 4%. Siegel's call for aggressive action reflects his view that the current economic environment demands a swift response. By reducing the base rate, the Fed can stimulate economic growth and address concerns about rising inflation. The proposed cuts would make borrowing more affordable for businesses and consumers, encouraging spending and investment. Siegel's analysis underscores the critical role of monetary policy in managing economic conditions and highlights the challenges policymakers face in balancing inflation control with economic growth.
