Fed Cut: Top US Economist Withdraws Call for Emergency 75 Basis Point Cut
CryptoNewsTerminal Staff08 Aug, 2024
Fed Cut: Top US Economist Withdraws Call for Emergency 75 Basis Point Cut
Top US economist Jeremy Siegel has withdrawn his call for an emergency 75 basis point Fed rate cut. He now believes that while an emergency rate cut is no longer necessary, the Fed should still move quickly and aggressively to raise interest rates, aiming to reach 4% as soon as possible. Siegel's previous call for an emergency rate cut was made in response to the sharp sell-off in the stock market and the rise in market volatility. However, he now believes that the market has stabilized and that the Fed should focus on raising interest rates to combat inflation. The Fed is expected to raise interest rates by 50 basis points at its next meeting in May. However, some economists believe that the Fed may need to raise rates even more aggressively to bring inflation under control.
