Wharton's Jeremy Siegel says stock sell-off is 'healthy' as cautious Fed gives investors a 'reality check'

The stock sell-off on Wall Street was considered “healthy” by finance professor Jeremy Siegel, as the Federal Reserve’s cautious projection on future rate cuts provided a “reality check” for investors. The Fed recently cut interest rates by a quarter percentage point, indicating that it may only lower rates twice more in 2025, leading to a significant market response with all major indexes sinking. Siegel expects the Fed to reduce the number of rate cuts next year, possibly even forgoing any cuts, as the FOMC raised its inflation forecast going forward.

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