Siegele Predicts Fed Rate Hike Next Week Amid Credibility Concerns

Financial markets expert Jeremy Siegel expects the Federal Reserve to raise interest rates next week despite the risk of a selloff. He believes that holding rates steady would undermine the credibility of Fed Chair Kevin Warsh, who took over in May 2026.

Siegel told CNBC's 'Closing Bell' that financial markets often test new Fed chairs, and this meeting will be no exception. President Donald Trump has publicly pushed for lower rates, but Siegel thinks Warsh will 'bite the bullet' and raise rates to maintain credibility.

The expert pointed out that a 0.3% inflation print could sway the committee towards a hike, while a 0.2% reading might support keeping rates steady. The recent hawkish speech by Fed Governor Christopher Waller at Jackson Hole has already increased the likelihood of a rate hike.