Wharton’s Jeremy Siegel says Fed needs to make an emergency rate cut

Wharton’s Jeremey Siegel Monday called on the Federal Reserve to make an emergency 75 basis points emergency cut in the federal funds rate after Friday’s disappointing jobs report.

In addition, there should be “another 75 basis point cut indicated for next month at the September meeting — and that’s minimum,” Siegel, professor emeritus of finance at University of Pennsylvania’s Wharton School of Business, said on “Squawk Box” Monday.

“The fed funds rate right now should be somewhere between 3.5 and 4%,” he said.

The Federal Reserve kept interest rates at 5.25% and 5.5% after its meeting last week. On Friday, the jobs report showed slower growth than expected and an unemployment rate that moved higher to 4.3%, its highest since October 2021.