Long-term market bull Jeremy Siegel expects a serious pullback that it isn’t tied to the Covid-19 surge risks.
His tipping point: a drastic change in Federal Reserve policy in order to deal with hot inflation.
“If the Fed suddenly gets tougher, I’m not sure that the market is going to be ready for a U-turn that [chair] Jerome Powell may take if we have one more bad inflation report,” the Wharton finance professor told CNBC’s “Trading Nation” on Friday. “A correction will come.”
The consumer price index surged 6.2% in October, the Labor Department reported earlier this month. It marked the biggest gain in more than 30 years.
Siegel criticizes the Fed for being far behind the curve in terms of…