We are fighting a war against COVID-19, a war that will cost trillions of dollars, many times the cost of our participation in the Great War. The Fed has enacted many programs to help those impacted by the economic shutdown but, ultimately, there is no free lunch. Jeremy Siegel answers the question: Who will end up paying for the COVID-19 war?
On the latest “Behind the Markets” podcast, Jeremy Schwartz and Professor Jeremy Siegel interviewed James Bullard, president and CEO of the Federal Reserve Bank of St. Louis about the last week’s Fed meeting and the outlook for monetary policy.
Professor Siegel had the honor to speak with Janet Yellen live at the University of Pennsylvania last week in her first interview outside of Washington since she stepped down as chair of the Fed.
On Wednesday afternoon the Federal Reserve raised rates by 25 basis points, effectively raising its target band for the Federal Funds Rate to 25−50 bps. A widely anticipated move, it is an important and positive development for risk markets such as equities in that it removes a level of uncertainty.
Professor Siegel made a call for a 10% correction in the markets roughly three weeks ago, which was followed by over a 10% selloff in the S&P 500 Index.