Economist Who Called Inflation Surge Says Fed Should Go Slow Now
- ‘Should not get overly aggressive’ right now: Jeremy Siegel
- Drop in GDP alongside robust job growth never seen before
Jeremy Siegel is quick to tout that he was one of the very first economists to predict the current surge in US inflation. As early as June 2020, when the pandemic was new and massive fiscal and monetary stimulus was just beginning to course through the economy, Siegel, emeritus professor of finance at the University of Pennsylvania’s Wharton School, was warning about the risk loud and clear.
Which is why it’s a little surprising to hear him say now that he wants the Federal Reserve to take it slow with interest-rate hikes as the central bank seeks to rein inflation back in. In an interview on Bloomberg’s “What Goes Up” podcast, he said price trends “on the ground” -- not within statistics -- make him believe that both the economy and inflation are already starting to slow, just five months into the Fed’s rate-hiking campaign.