Fed Should Cut Rates by 0.75% Immediately, According to Expert

During an interview on CNBC, Wharton's Professor Jeremey Siegel, who is also the Chief Economist at WisdomTree calls for 0.75% emergency rate cut by the FED.

He also says that there should be another 0.75% rate cut after the next meeting – and thats a bare minimnum as the rate should be between 3.5% and 4%.

Siegel also mentioned that at the june meeting Fed said when inflation reached 2% and unemployment has come up to 4.2% the long-term federal funds rate should be 2.8%.

The economist stated that last Friday that unemployment target was surpassed and reached 4.3%. The inflation has also dropped 90% from its peak and is near the target. In other words the United States “overshot” the targets.

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The Fed wanted these targets to be fulfilled and then they would cut the rates – but they didn’t, which according to Siegel makes absolutely no sense.

Not only the U.S. but other economies are suffering, because of Jerome Powell’s irrational decision making and an emergency rate cut is to be expected, since everything has gotten out of the Fed’s control.

Alexander Stefanov