Jeremy Siegel, finance professor at Wharton, says the Federal Reserve would already be raising interest rates without political pressure tied to the 2026 midterm elections and Donald Trump. The August jobs report came in stronger than expected, with 162,000 jobs created, unemployment steady at 4.1% and wage growth at 3.1% year over year. Trump threatened on Truth Social to halt trade with countries where the United States runs a deficit if the Fed does not cut rates. Siegel also pointed to excessive M2 money supply growth of about 10% since the conflict with Iran began. Producer and consumer price index reports due this week should help settle the rate debate.
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