Jeremy Siegel: Stocks could jump 15% if Fed cuts rates quickly

Stocks could jump 15% or higher – so long as the Fed cuts interest rates quickly later this year, according to Wharton Professor Jeremy Siegel.

"I would see a meaningful gain in the stock market, I think if I saw that the Fed would respond to the downside as rigorously as responded to the upside," the top economist said in an interview withon Wednesday, referring to the central bank's aggressive interest rate hikes over the past year to combat inflation.

If Fed officials cut rates quickly in response to negative GDP or job market weakness, stocks could see smooth sailing and return 15% or more through 2023, Siegel predicted. If rates aren't cut in a timely matter, he believed stocks could see a 5%-10% return.due to rising inflation and the Fed's rapid interest rate hikes., as inflation is already on the downtrend.per the latest consumer price index report.than what shows in the official statistics due to lags in the recorded data.

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