Wharton professor Jeremy Siegel says a major Fed rate increase could send the Dow down 1,000 points, and ending the hikes could boost the S&P 500 by over 10%
Stocks could tumble if the Federal Reserve surprises investors with a 50-basis-point hike to interest rates on Wednesday, instead of raising them by the expected 25 points, Jeremy Siegel has warned.
On the other hand, the author of"Stocks for the Long Run" has suggested the S&P 500 could surge by over 10% to around 4,500 points if the Fed promptly pivots to cutting rates and worker productivity improves. He issued the forecast during theUS inflation surged to a 40-year high of 9.1% last June, spurring the Fed to hike rates from nearly zero in March to over 4% by the end of December.
The veteran academic outlined what investors want to see from the central bank, and why a delayed shift to cutting rates would be dangerous.
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