Jeremy Siegel: Stocks could add another 5% onto record rally by year-end thanks to the Fed

After four 0.25% hikes last year, the target range for the fed funds overnight bank lending rate stands at 2.25% to 2.5%. The final Fed increase in borrowing costs in 2018 came in December when the stock market was melting down.

Siegel said he hopes the Fed cuts rates by a half percentage point at its upcoming July 30-31 meeting, though he acknowledges that such a bold move would be unlikely.tracker was putting only about a 25% probability on a 0.5% reduction in the fed funds and much larger 75% odds on a 0.25% cut. The reason Siegel would like to see a deeper cut is because he's concerned about the fed funds rate being higher than the3-month TreasuryThat so-called inverted yield curve, when shorter-term bonds deliver higher rates than longer-term ones, historically has signaled a recession on the horizon.

"The biggest factor here is we really did see an inversion in that yield curve," Siegel said. "I've gone through history, it is one of the most single reliable indicators of a recession. And I worry about that."

the fed will create a massive bubble

One contrary prediction after another. Investors will LOVE that. Understandable uncertainty.

Mnuchin said we need to raise the debt limit before Congress adjourns. If the economy is doing so well per Trump, the tariffs are bring so much money per Trump, and tax cuts are good per Trump, Then why are we getting deeper into debt faster?

Kinda sad no one is or has been talking about fundamentals or earnings for a while now. They just see stock prices and the Fed, not earnings.

Could? And only 5%?

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