Wharton finance professor Jeremy Siegel says that the Federal Open Market Committee (FOMC) could leave Fed Funds unchanged (announcement due November 7) if there is a substantial upside surprise to the nonfarm payrol headline on Friday (November 1)
Siegel spoke with CNBC last week:
- “If we get a strong labor market report for the month of October, there’s going to be a lot of people, a lot of the FOMC members, that are going to say maybe we should pause at this particular juncture,”
- Siegel sees three to four cuts ahead during the easing cycle
- rates will probably be elevated in the long run
- stock market looks strong
- economy remains resilient
Back in August Siegel called for a 75bp Fed emergency rate cut.
Hmmmm. Well, yes if it comes in hot. Later in the week I’ll pop the range of expectations, this’ll give us an idea of what ‘hot’ would mean.
Expections for the NFP, due at 8.30 am US Eastern time on Friday: