Jeremy Siegel, a professor of finance at the Wharton School of Business at the University of Pennsylvania, predicted the S&P 500 index to rise by 15-20% in 2023. The US stock market will begin to rise after the Fed gives a signal to stop raising rates, writes CNBC.

“They haven’t figured out yet that the inflation problem is mostly solved, but they will,” Siegel said.

According to him, the Fed may realize this at the end of this year or early next year. Following this, stock prices will rush up, the professor is sure.

According to Siegel, the Fed will raise rates by another 50 bp in December, but then it may signal a pause in monetary policy tightening.

“Given the backlog in monetary policy, given the tension we have been in so far, they need to pause to see what actually happens. This would really provoke a major rally, ”the professor predicted.

He added that the regulator’s statement that there are already signs of a significant reduction in inflation and that most of the rate hikes are over is enough for a strong market growth. According to Siegel, the rally could start in December or January after the next Fed meeting.