Wharton's Jeremy Siegel: I don't think the drama surrounding Fed Chair Powell is over

Summary

Jeremy Siegel discusses the unresolved drama around Fed Chair Powell's potential resignation and its implications for rate policy. He then gives a bullish outlook on the US stock market, citing strong earnings, fiscal stimulus, easier credit, and AI momentum, while noting that $90 oil is manageable but a spike to $140-150 would be a risk.

• Siegel believes the Powell resignation drama is not over and Powell may stay on as a board member, blocking a Trump appointee.
• He notes that the market is trading at record highs despite elevated oil and Middle East conflict.
• Siegel sees strong earnings, fiscal stimulus from war spending, and easier credit supporting the market.
• He highlights that AI's importance may have increased further due to defense applications.
• He views $90 oil as manageable for the US due to energy self-sufficiency, but warns $140-150 oil would be a major risk.
• The potential for a peace deal that opens up Russian oil supply is seen as a big positive for the market.