Expect a 'hawkish cut' from the Fed this week, says Wharton's Jeremy Siegel

Group 1 - The Federal Reserve is expected to implement a "hawkish cut" of 25 basis points, with potential dissent among members regarding the decision [1][2] - There may be two to three members advocating for keeping interest rates unchanged, indicating significant dissent within the Fed [2] - The upcoming announcement of a new Fed official could influence market dynamics, particularly if it is Kevin Hasset [5] Group 2 - The bond market is anticipated to remain relatively stable despite a potential decrease in interest rates, as historical trends suggest the Fed funds rate typically sits about 100 basis points below the 10-year rate [6][7] - A significant amount of loans, over $15 trillion, are tied to the Fed funds rate, which will stimulate the economy through short-term borrowing despite limited impact on long-term rates [8] - Current economic indicators suggest that the economy is performing well, with no significant downturn in sales, which may alleviate concerns regarding the impact of tariffs [11]