An emergency rate cut is necessary, according to Wharton's Jeremy Siegel.

• Siegel stated that the fed funds rate should be between 3.5% and 4%.
• After its meeting last week, the Federal Reserve maintained interest rates at 5.25% and 5.5%.
• On Friday, the jobs report revealed slower growth than anticipated and an increased unemployment rate of 4.3%, the highest since October 2021.

On Monday, Jeremey Siegel of Wharton urged the Federal Reserve to make an emergency 75 basis points reduction in the federal funds rate following Friday's disappointing jobs report.

Another 75 basis point cut is expected to be announced at the September meeting, according to Siegel, professor emeritus of finance at University of Pennsylvania's Wharton School of Business, who stated this on "Squawk Box" Monday.

He stated that the fed funds rate should be between 3.5% and 4%.

The Federal Reserve maintained interest rates at 5.25% and 5.5% following its meeting last week. However, on Friday, the jobs report revealed slower growth than anticipated and an increased unemployment rate of 4.3%, which is its highest since October 2021.

The unemployment rate "exceeded" the central bank's target of 4.2%, according to Siegel, chief economist at Wisdom Tree. Additionally, inflation has decreased by 90% towards the Fed's target of 2%, he stated.

"What is the current fed funds rate?" he asked. "That makes absolutely no sense whatsoever."

Siegel believes that emergency cuts will not cause the markets to plummet but instead expects them to surge.

In early 2001, Alan Greenspan made an emergency 50 basis point cut, which he announced after not cutting at the December 2000 meeting. The market responded positively and rallied sharply, as Greenspan stated.

"The Fed doesn't know anything about the economy. The market knows better and they must respond."

If the Fed fails to make an emergency cut before the September meeting, the market will react negatively, according to Siegel's prediction.