The financial markets "rose for good reasons" last week after economic data and Federal Reserve commentary eased fears that the central bank might raise interest rates, WisdomTree and Wharton School economist Jeremy Siegel said Monday.
Fed Chair Jerome Powell "downplayed the outside risk of a pivot towards rate hikes. He set a tone of patience and emphasized the Fed's current approach of waiting for more definitive signs of inflation trends before making further adjustments," Siegel wrote in his weekly post on WisdomTree's website.
Powell suggested "a slow but steady path to lower rates," the economist said.
Data on employment costs and hourly wages "provided reassurance that wage-driven inflation pressures are moderating," Siegel wrote.
