Siegel pointed out that oil prices have plunged to levels not seen since the start of 2022, prior to Russia’s invasion of Ukraine, and home prices and home-building activity are starting to fall.
“The only thing that’s not going down is wages, and by the way, wages are in catch-up mode. Don’t argue their pushing inflation; they’re lagging inflation. I mean, workers are trying to get a little bit back of what the inflation happens to be,” Siegel said.
“Why is he putting the burden on these working people, on the employed people, when every other commodity price is going down,” Siegel said passionately.
“I think the Fed is just way too tight. They’re making exactly the same mistake on the other side that they made a year ago,” Siegel added.
Siegel expects the overly-tight actions from the Fed will continue to weigh on stock prices, and if tightening actions from the Fed continue through 2023, “you can make sure that there’s a major recession on the other side,” Siegel said.
“I am very upset. It’s like a pendulum. They were way too easy through 2020 and 2021, and now [impersonating the Fed] ‘we’re going to be real tough guys until we crush the economy.’ I mean, that is just to me absolutely; poor monetary policy would be an understatement,” Siegel said.
