Jeremy Siegel on the potential for Fed tightening

There's so many steps to go before we hit [a point where the Fed feels compelled to tighten] and Bernanke is going to give a speech that is going to say, you know, 'Our strength is now showing, we're going to remove some of the accomodation'. It'll first come probably with moving just the discount rate and then finally some moves on the Federal Funds, it's not going to come all of a sudden. 'Cause, despite how bad the inflation numbers were on the PPI and the CPI this week, the Core were almost exactly on target. That is what the Fed is looking at so there is no reason for a precipitous move right now. They just have to keep their eyes open for problems.

~Jeremy Siegel, professor of finance, Wharton School of Business, Bloomberg News interview, March 24, 2011