Economy

The Fed vs Inflation
Professor: Call a meeting and triple the interest rate

The Federal Reserve has gone completely off the rails and should now "triple-cut" interest rates by 75 basis points at an extraordinary meeting. Wharton professor Jeremy Siegel tells CNBC.

He points out that unemployment has passed the Fed's target level of 4.2 percent while inflation has basically been defeated.

- How much has the Fed lowered the interest rate in that situation? Zero. It is completely incomprehensible, says Siegel.

Several analysts have warned that an "emergency rate cut" by the Fed would signal panic and make the market even more nervous. But Siegel is convinced that such a move would rather trigger a relief rally.

Chief investment officer Keith Fitz-Gerald is also hoping for an extraordinary meeting from the Fed. He tells Fox Business that an emergency rate cut would give the market a reassuring signal that everything will be okay.

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The crypto market
Crypto is infected by stock market falls - crash of over 15 percent

The crypto market is not withstanding Monday's selling pressure on the world's risk assets, writes Bloomberg. Bitcoin is down around 15 percent to around $51,000, while ethereum is plunging over 25 percent to just over $2,200 — the biggest drop since the summer of 2022.

According to the news agency, bitcoin ETFs have now seen their biggest outflows in three months.

- This is a great reminder that bitcoin and cryptocurrencies in general are assets at the far end of the risk scale, Tony Sycamore, market analyst at IG told Reuters.

In Wall Street trading, double-digit declines are noted among crypto-related companies such as Coinbase and Microstrategy.

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Today's stock market
Wall Street was dragged into the slide – the worst day since 2022

Wall Street was dragged into the global stock market rout and broad indexes had their worst trading day since 2022. The heavy falls moderated somewhat during the day and at the close the indexes stood as follows:
• S&P 500: −3.0%
• Nasdaq: −3.4%
• Dow Jones: -2.6%
The index was weighed down by the large tech companies that previously acted as locomotives on the stock exchange. Among other things, the AI ​​giant Nvidia plummeted over 6 percent, while Tesla was down just over 4 percent. Shares rebounded after plunging double-digits at the open.

Apple fell 5 percent. Over the weekend, it was reported that Buffett's Berkshire Hathaway halved its stake in the iPhone maker.

Remaining parts of the so-called Magnificent Seven – Meta, Amazon, Alphabet and Microsoft – fell between 2 and 4 percent. Alphabet was weighed down by Google losing a case against the DOJ over monopoly allegations.

In addition to technology, the banking sector also had a tough day. Bank of America and Wells Fargo fell more than 2 percent.

Among stocks that rose against the current are chip giant AMD and On Semiconductor. Both were up over 1 percent.

Victoria Greene of G Squared Private Wealth tells CNBC that what is happening in the markets now is a correction.

- It is painful, she adds.

The New York stock exchanges on Friday
S&P 500: −1.8%
Nasdaq: −2.4%
Dow Jones: -1.5%