Fears about the impact of a banking crisis are preying on markets — but there could be a silver lining for the US economy, according to Wharton professor Jeremy Siegel.
While Paul Krugman has warned the chaos has increased the risk of a US recession, Siegel was more upbeat in his weekly commentary.
“The recent turmoil in markets also makes me more optimistic on the outlook for 2024,” Siegel said in the commentary Monday.
“If this banking accident occurred later, we would have much higher rates,” he added, referring to the Federal Reserve’s aggressive interest-rate campaign.
“So, a natural downshift in how tight policy will become from this is one of silver linings from this current banking crisis.”