There’s an underlying trend that’s making the Fed’s job easier, Wharton’s Jeremy Siegel says

The U.S. economy could bring down inflation while avoiding a growth slowdown — thanks to a rise in productivity, according to Jeremy Siegel, professor of finance at the Wharton School of Business. “The last quarter was, outside of the few months around the pandemic, the best quarter for productivity in over six years,” Siegel told CNBC’s “Squawk Box” on Monday. Data from the U.S. Department of Labor showed that nonfarm business sector labor productivity rose 3.7% during the prior quarter, as output gained 2.4% and hours worked fell 1.3%. Recent projections have also supported Siegel’s predictions of more economic growth. The Atlanta Federal Reserve’s GDPNow tracker of incoming data is suggesting growth of 5.8% in the period of July through September. Siegel added that he expects another third-quarter boom in productivity. “This is really saving Jay Powell. This is the best news,” Siegel said, referring to Fed Chairman Jerome Powell. “That’s how you can have strong GDP growth without pressure on the labor market, and really without pressure on inflation. That’s the golden ‘math-magic’ over here.”

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