The Fed could pause rate cuts at its meeting next week if the October jobs report is hot, Wharton professor Jeremy Siegel says

• Wharton's Jeremy Siegel said nan Fed could region its liking rate-cutting rhythm adjacent week.
• He said a beardown jobs study for October would punctual officials to uncertainty nan request for much cuts.
• Interest rates will apt stay elevated successful nan long-term, he added.

The Fed could astonishment markets by leaving liking rates unchanged astatine its gathering adjacent week, apical economist Jeremy Siegel said.

The Wharton finance professor said that though investors are pricing successful different 25 basis-point complaint trim successful November pinch adjacent certainty, a basking jobs study connected Friday could upend those expectations.

Economists expect information to show 110,000 jobs were added successful October. A large upside astonishment to that estimate would travel September's stunningly beardown reference of 254,000, and would apt further recalibrate nan market's expectations of really overmuch nan Fed will easiness liking rates.

"If we get a beardown labour marketplace study for nan period of October, there's going to beryllium a batch of people, a batch of nan FOMC members, that are going to opportunity possibly we should region astatine this peculiar juncture," Siegel said successful an question and reply pinch CNBC connected Friday.

Fed officials issued a jumbo-sized, 50 basis-point complaint cut astatine their September meeting. Fed politician Michelle Bowman was a lone dissenting sound astatine that time. Since then, and since nan large September jobs figure, different Fed officials person called for much "caution," pointing to nan resilient occupation marketplace and beardown economical growth.

Siegel predicted cardinal bankers would trim rates different 3 to 4 times successful their policy-easing cycle. However, he said, liking rates will astir apt beryllium elevated successful nan agelong run. He added that nan banal marketplace looked "strong" and that nan system remained resilient.

Third-quarter GDP information will beryllium published connected Wednesday, and is estimated to show nan system grew by 3.3% from July done September.

Most investors are still expecting dependable complaint cuts complete nan coming months despite nan beardown economical backdrop. According to nan CME FedWatch Tool, markets spot 2 25-basis constituent cuts done nan remainder of this twelvemonth and spot astir a 40% chance that nan Fed costs complaint will beryllium 100 ground points little by May of adjacent year.