CNBC’s Jim Cramer Analyzes Inflation and the Federal Reserve’s Rate Hikes
Inflation has been a hot topic in the United States, and CNBC’s Jim Cramer shared his thoughts on the matter on Wednesday. Cramer believes that the Federal Reserve will not stop rate hikes until the cost of living comes down.
“For two years now, we’ve heard that the Fed’s rapid rate hikes would soon cause a recession, which would then crush inflation and ultimately lead to rate cuts,” said Cramer. “But that never happened.”
During the Federal Reserve’s two-day policy meeting, they decided to leave interest rates unchanged but signaled the possibility of one more rate hike this year.
Cramer speculates that Fed Chair Jerome Powell would prefer to see prices drop without layoffs, but is willing to increase rates again even if it means more people losing their jobs. According to Cramer, Powell understands that the long-term damage caused by inflation could be even worse.
While acknowledging that the Fed has managed to bring down inflation from extreme highs in the past, Cramer believes that it still remains high and moderately out of control.
“Maybe that means Powell’s almost ready to take the stock market from a sell to a hold. Or maybe, he’ll know the time to stop tightening when he sees it and not before then,” said Cramer.
Cramer also shared his insights on investing, offering his guide to building long-term wealth and investing smarter. To download “Jim Cramer’s Guide to Investing” at no cost, readers can click here.
As the state of inflation continues to be closely monitored by economists and investors, Jim Cramer’s analysis provides valuable insight into the Federal Reserve’s approach to interest rates and the potential impact on individuals and the economy as a whole.