Siegel spoke after Trump told The Wall Street Journal on Tuesday that he considering renominating Yellen as Fed chair when her term expires in February. National Economic Council Director Gary Cohn is also under consideration, Trump said, confirming reports.
In the interview, the president said Yellen has done a good job as leader of the central bank and said he has "a lot of respect for her."
"I was pleased with Trump's comments about Janet Yellen. I think she's done a good job ... I think that's a good team. I think that's a good team for the Trump administration," Siegel said on "Halftime Report."
"The fact that he has actively said he is considering her, I mean I think that should be very, very positive the markets," he added, saying that Wall Street is also comfortable with Yellen.
CNBC and other media outlets had been buzzing for months about Trump's possible pick to lead the Fed, including Cohn. A Politico report, citing four sources, said earlier this month that Cohn was Trump's top choice to succeed Yellen when her term expires in February.
Before joining the Trump administration, Cohn was the No. 2 executive at investment bank Goldman Sachs. A Cohn appointment would break with a tradition of having an economist as Fed chairman.
Watch: We shouldn't have as much short run volatility in the market, says Siegel