In a recent CNBC Squawk Box segment, Joe Kernen and Jeremy Siegel, Professor Emeritus of Finance at the University of Pennsylvania’s Wharton School of Business, discussed the Federal Reserve’s monetary policy and its impact on the economy.

Kernen began by highlighting the volatility in the market and referenced previous predictions by Tom Lee about the VIX index.

He then shifted the focus to Siegel’s criticism of the Fed’s current approach. “Jeremy, I would, I hate you probably aren’t happy to say I told you so either, given you know what we’re witnessing, but you thought the Fed was staying at once again for the second time, staying at the party too long and too restrictive,” Kernen said.

“I’m calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting – and that’s minimum,” says Wharton’s Jeremy Siegel: pic.twitter.com/s4CgWx962Q

— Squawk Box (@SquawkCNBC) August 5, 2024

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Siegel responded emphatically, calling for significant changes in the Fed’s monetary policy. “Absolutely. And you know, this may surprise me, I’m calling for 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting, and that’s minimum. The Fed funds rate right now should be somewhere between three and a half and 4%,” Siegel stated.

Four years ago today, Trump claimed the stock market would “crash” if Joe Biden was elected.

The market is crashing

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He elaborated on his position, explaining the discrepancy between current economic conditions and the Fed’s policies. “Let me give you very simple logic of my position here. At the June meeting, the Fed has said that the long run Fed funds rate, when inflation reached 2% and unemployment has come up to 4.2%, should be 2.8%—that’s the normal. 2.8% is the normal Fed funds rate. Well, on Friday, we blew it across the employment number. We’re at 4.3%—that even argues for a lower one. Now as far as inflation, we’re at two and a half percent. We’ve gone down 90% towards the target on the inflation rate. We’ve overshot the target on the employment. Those are the two targets explicitly mentioned by the Federal Reserve. All right. And how much have we moved the Fed funds rate? Zero. That makes absolutely no sense whatsoever,” Siegel argued.

Donald Trump weighed in on what’s going on with a few posts on Truth Social: