Tame inflation and stronger real growth are good signs for stock market: WisdomTree's Jeremy Siegel

Economic Overview - Year-over-year inflation is reported at 2.9%, which remains above the Federal Reserve's target rate, indicating ongoing inflationary pressures [1] - Recent economic data shows a decrease in the trade deficit and strong durable goods reports, leading forecasters to raise GDP estimates for the third quarter [2] Inflation Insights - Inflation is considered tame based on month-over-month data, although tariffs are expected to create a temporary increase in inflation [3][4] - The Federal Reserve is advised to look beyond tariff-induced price increases, as these do not reflect genuine demand in the economy [4] GDP Projections - The Atlanta Fed has increased its GDP estimate for the third quarter to the high 3% range, while Goldman Sachs projects mid-2% growth, indicating decent but not excessive growth [9] - The first half of the year saw GDP growth under 2%, with the first quarter being negative [9] Retail and Consumer Spending - The upcoming fourth quarter is critical for assessing the impact of tariffs on consumer spending, particularly during the holiday season when retail firms typically generate significant profits [10] Federal Reserve Actions - The Federal Reserve is expected to implement interest rate cuts, with a 25 basis point cut anticipated in the next two meetings [11][13] - Payroll growth has significantly decreased, with estimates for the upcoming employment report suggesting only 50,000 new jobs, compared to previous estimates of 150,000 to 300,000 [12]