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Professor Jeremy Siegel calls for bold action at the US Federal Reserve
Published 9 August 2024
Christopher Gannatti, CFA
Global Head of Research
Key Takeaways
- On Monday 5 August 2024, Professor Jeremy Siegel called for the US Federal Reserve (Fed) to take bold action publicly on a CNBC segment
- Professor Siegel’s call for immediate rate cuts is NOT an indication of a Fed ‘panic’
- We may be seeing a transition from the “Magnificent Seven” dominating global markets into another, where different fundamentals begin to prevail again, and things like dividends, quality companies and even gold become more greatly appreciated
- Related Products WisdomTree Global Quality Dividend Growth UCITS ETF - USD Acc, WisdomTree US Quality Dividend Growth UCITS ETF - USD Acc Find out more
On Monday 5 August 2024, Professor Jeremy Siegel called for the US Federal Reserve (Fed) to take bold action publicly on a CNBC segment:
- An intra-meeting 75 basis point cut to the US Federal Funds Rate, the policy rate under the purview of the Federal Open Market Committee (FOMC).
- Another 75 basis point cut to this rate at their September 2024 meeting.
In recent years, the FOMC has been too slow to hike, as Professor Siegel pointed out in real time in 2020 and 2021, and now the Fed faces the risk of being too slow in reverse. Again, this is not a market panic call – he wants some explanation as to why the Fed is being inconsistent with its own projections.
- DGRA: -8.45%
- Russell 1000 Index: -19.14%; DGRA outperformed by 10.69%
- S&P 500 Index: -18.13%; DGRA outperformed by 9.68%
- GGRA: -13.88%
- MSCI World Index: -17.71%
- Difference: 3.82%
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About the contributor
Christopher Gannatti, CFA
Global Head of Research
Christopher Gannatti began at WisdomTree as a Research Analyst in December 2010, working directly with Jeremy Schwartz, CFA®, Director of Research. In January of 2014, he was promoted to Associate Director of Research where he was responsible to lead different groups of analysts and strategists within the broader Research team at WisdomTree. In February of 2018, Christopher was promoted to Head of Research, Europe, where he was based out of WisdomTree’s London office and was responsible for the full WisdomTree research effort within the European market, as well as supporting the UCITs platform globally. In November 2021, Christopher was promoted to Global Head of Research, now responsible for numerous communications on investment strategy globally, particularly in the thematic equity space. Christopher came to WisdomTree from Lord Abbett, where he worked for four and a half years as a Regional Consultant. He received his MBA in Quantitative Finance, Accounting, and Economics from NYU’s Stern School of Business in 2010, and he received his bachelor’s degree from Colgate University in Economics in 2006. Christopher is a holder of the Chartered Financial Analyst Designation.