Closing Bell Closing Bell: Market Reading Powell Correctly? 8/22/25
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Aug 22, 2025 Jeremy Siegel, a Wharton finance professor and WisdomTree senior economist, joins Steve Liesman, a CNBC correspondent at Jackson Hole. They dive into Chair Powell's recent speech, dissecting its potential effects on the market and interest rate outlook. Key highlights include discussions on recent stock market gains, signals from the Federal Reserve about potential rate cuts, and how the housing market may be influenced by declining mortgage rates. They analyze the interplay between inflation expectations and investor sentiment, providing insights on market dynamics.
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Powell Signals Dovish Tilt On Tariffs
- Powell signaled that tariff-driven price rises look one-time and unlikely to unanchor inflation expectations.
- Markets took that as a clear green light for a September rate cut and repriced accordingly.
Market Reaction Matches Policy Shift
- Jeremy Siegel called Powell's remarks dovish and said markets reacted correctly.
- He expects multiple 25bp cuts and more upside for equities if short rates fall into the low threes.
Labor Weakness Lets Fed Consider Cuts
- Drew Matus said Powell effectively sided with Governor Waller's view by acknowledging labor weakness.
- The bond market's 10-year move lower validated the Fed's ability to cut without sparking inflation fears.