Wharton professor Jeremy Siegel says the current credit squeeze is equal to 3 or 4 interest-rate hikes – and urges the Fed to pause its war against inflation

• Wharton professor Jeremy Siegel said the ongoing credit squeeze is equivalent to three or four Fed rate hikes. 
• Siegel urged the Fed to pause its inflation war given tightening credit conditions and the central bank’s lagged economic data. 
• “They’re in dangerous territory of precipitating a recession,” Siegel said. 

Wharton professor Jeremy Siegel said the current credit squeeze is equivalent to three or four interest rate increases – and urged the Federal Reserve to hold off on its inflation battle. 

Since the collapse of Silicon Valley Bank, Signature Bank and First Republic this year, most small and mid-sized US banks have begun pulling back on lending money to consumers, with Fox Business reporting that 48% of lenders have tightened their credit standards.