If the Fed doesn't cut rates, it will be 'tougher sledding' for the market this year, says Jeremy Siegel

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Wharton finance professor Jeremy Siegel told CNBC he's expecting some months of negative job growth later this year.

Wharton finance professor Jeremy Siegel is expecting some months of negative job growth later this year, and if the Federal Reserve doesn't respond with rate cuts, the market could struggle, he said Wednesday. The central bank raised interest rates this month, but also hinted at a potential pause in hikes. For Siegel, that may not be enough if the economy turns.

Inflation has been showing signs of easing. The consumer price index for April , released Wednesday, rose 0.4% for the month, in line with expectations. However, the annual increase of 4.9%, was less than expected — and it was the slowest pace of growth since April 2021. "We know the tremendous lag in the housing sector will play itself out in the second half of this year," Siegel said.

 

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