Workers are trying desperately to catch up but they’re not. “We experienced a 5% year-overyear wage growth. Why wages aren’t driving overall inflation He also explained why Fed Chairman Jerome Powell could make a huge mistake.ġ. In an extended interview with CNBC last weekSiegel presented his views on the stock market’s future and how it will affect the economy next year. upside of at least 20%.Because he sees inflation collapsing and a strong economy that many investors underestimate. However, unlike other stock market outlooks he is bullish and calls to invest in 2023. Professor Jeremy Siegel from Wharton has been vocal in his belief that the Federal Reserve’s large interest rate hikes could cause long-term damage to the economy as more investors worry about a recession. That's when the talk will begin on maybe lowering rates and two or three of those combined, and I think by the fall we might actually see them notch down rates," Siegel said.You can access your favourite topics from a personalized feed while on the move. That means the labor market is still on solid footing.īut if the job market starts to unravel, and if a mild recession appears in the economy, then the Fed can get serious about lowering interest rates, which the stock market would love. And weekly jobless claims continue to hover at levels lower than before the COVID-19 pandemic.
The April jobs report came in stronger than expected last week, with 253,000 jobs added to the economy. all you need is a couple of negative payrolls and a rise in the unemployment rate, and the political pressure on the Fed," Siegel said. If we get a negative payroll that's going to hit headlines. Don't forget we're getting into political season.
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