Wharton’s Jeremy Siegel says stocks could jump 15% or more this year—but only if the Fed cuts rates

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Well-known University of Pennsylvania finance professor Jeremy Siegel believes investors’ fate lies in the hands of the Federal Reserve this year. If central bank officials “respond” to fading inflation and slowing economic growth by cutting interest rates, then stocks will soar.

“If they respond, I think there's gonna be a really good year—15% or more total return,” Siegel told CNBC Wednesday. “[But] if the Fed does not cut, then it's going to be tougher sledding for the markets. I’m not gonna say a crash or anything in that sense, but I think it's going to be tougher sledding.”