{"id":501532,"date":"2022-10-13T22:50:25","date_gmt":"2022-10-13T19:50:25","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/jeremy-siegel-warns-fed-risks-causing-depression-by-using-core-inflation-to-set-policy\/"},"modified":"2022-10-13T22:50:25","modified_gmt":"2022-10-13T19:50:25","slug":"jeremy-siegel-warns-fed-risks-causing-depression-by-using-core-inflation-to-set-policy","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/jeremy-siegel-warns-fed-risks-causing-depression-by-using-core-inflation-to-set-policy\/","title":{"rendered":"#Jeremy Siegel warns Fed risks causing &#8216;depression&#8217; by using core inflation to set policy"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a29d6ec72e90\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a29d6ec72e90\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/jeremy-siegel-warns-fed-risks-causing-depression-by-using-core-inflation-to-set-policy\/#%E2%80%9CJeremy_Siegel_warns_Fed_risks_causing_%E2%80%98depression_by_using_core_inflation_to_set_policy%E2%80%9D\" >&#8220;Jeremy Siegel warns Fed risks causing &#8216;depression&#8217; by using core inflation to set policy&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CJeremy_Siegel_warns_Fed_risks_causing_%E2%80%98depression_by_using_core_inflation_to_set_policy%E2%80%9D\"><\/span>&#8220;Jeremy Siegel warns Fed risks causing &#8216;depression&#8217; by using core inflation to set policy&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>The Federal Reserve risks causing an economic \u201cdepression\u201d if it relies on core inflation readings to determine when it should stop hiking interest rates, Wharton professor Jeremy Siegel warned Thursday.<\/p>\n<p>Siegel, who has previously accused the Fed of tanking the economy, pushed back during an <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/video\/2022\/10\/13\/short-if-the-fed-waits-for-core-inflation-to-hit-2-percent-itll-drive-economy-into-depression-says-jeremy-siegel.html\">appearance on CNBC<\/a> when asked if the latest federal inflation data showed central bankers were justified in pursuing more hikes. Inflation hit 8.2% in September, higher than economists expected. \u00a0<\/p>\n<p>\u201cIf the Fed waits for the core [inflation] to get down to 2% year-over-year, it\u2019ll drive the economy into a depression,\u201d Siegel said. \u201cTotally wrong.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/jeremy-siegel.jpg?w=1024\" alt=\"Jeremy Siegel\" class=\"wp-image-24245382\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/jeremy-siegel.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/jeremy-siegel.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/jeremy-siegel.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Jeremy Siegel is an outspoken critic of the Fed\u2019s policy path.<\/figcaption><figcaption><span class=\"credit\">NBCU Photo Bank\/NBCUniversal via<\/span><\/figcaption><\/figure>\n<p>Core inflation, which excludes volatile food and energy prices, ran at a hotter-than-expected 6.6% in September. The shelter index, which includes rent, was up 6.6% year-over-year and accounted for more than 40% of the overall increase in core inflation, according to the BLS.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-wrapper twitter\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Professor of Finance Jeremy Siegel at the Wharton School says if the Fed waits for the Core CPI to go down to 2% YoY, it will drive the economy into a depression <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/LClLxVzfT5\">pic.twitter.com\/LClLxVzfT5<\/a><\/p>\n<p>\u2014 CNBC Halftime Report (@HalftimeReport) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/HalftimeReport\/status\/1580596043518836744?ref_src=twsrc%5Etfw\">October 13, 2022<\/a><\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/figure>\n<p>Siegel argued that readings on housing and rents included in the Consumer Price Index \u2013 key factors driving core inflation in September \u2013 are actually lagging indicators that do not accurately represent current market conditions.<\/p>\n<p>The professor argued it will take \u201cmonths, if not years\u201d for declines in housing and other sectors to be accurately reflected in the Consumer Price Index reports released by the Bureau of Labor Statistics.<\/p>\n<p>\u201cI\u2019m not at all surprised by the number because the number is ridiculous,\u201d Siegel said, referring to core inflation. \u201cIt has no meaning to what the actual rate of inflation is. And the housing, which is almost 50% of the core rate, is the most distorted of all.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/jerome-powell.jpg?w=1024\" alt=\"Fed Chair Jerome Powell\" class=\"wp-image-24245383\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/jerome-powell.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/jerome-powell.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/jerome-powell.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The Fed is widely expected to implement another sharp hike in November.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>The Fed has a 2% target for inflation that it deems acceptable. Investors have feared for months that the Fed will overcorrect through sharp interest rate hikes that will result in a sustained economic downturn.<\/p>\n<p>The latest inflation report was released one week after Siegel torched the Fed\u2019s response to the situation in a fiery rant. The prominent commentator argued the Fed\u2019s current policy path is \u201cway too tight\u201d and \u201cmakes absolutely no sense to me whatsoever.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/nyse-3.jpg?w=1024\" alt=\"NYSE trader\" class=\"wp-image-24245389\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/nyse-3.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/nyse-3.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/nyse-3.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Siegel warned the Fed risks causing a depression through restrictive economic policy.<\/figcaption><figcaption><span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>\u201cIt\u2019s like a pendulum. They were way too easy, as I\u2019ve told you and many others, through 2020, 2021,\u201d Siegel said at the time. \u201cAnd now, \u2018Oh my God, we\u2019re going to be real tough guys until we crush the economy.\u2019 \u2018Poor monetary policy\u2019 would be an understatement.\u201d<\/p>\n<p>The market overwhelmingly expects Fed policymakers to hike the benchmark interest rate by three-quarters of a percentage point for the fourth straight meeting. The Fed is slated to meet on Nov. 1-2.<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/10\/13\/jeremy-siegel-warns-fed-risks-causing-depression-by-using-core-inflation-to-set-policy\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Jeremy Siegel warns Fed risks causing &#8216;depression&#8217; by using core inflation to set policy&#8221; The Federal Reserve risks causing an economic \u201cdepression\u201d if it relies on core inflation readings to determine when it should stop hiking interest rates, Wharton professor Jeremy Siegel warned Thursday. Siegel, who has previously accused the Fed of tanking the economy,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":501533,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/nyse-comp.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134110,71739,5069,70550,70551,91261,127049],"class_list":["post-501532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-10-13-22","tag-cnbc","tag-economy","tag-federal-reserve","tag-inflation","tag-recession","tag-the-fed"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/501532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=501532"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/501532\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/501533"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=501532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=501532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=501532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}