CNBC’s Jim Cramer stated Wednesday he expects the Federal Reserve to maintain elevating rates of interest till there may be clear proof that the U.S. financial system has slowed down.
While some hoped the Fed might quickly cease aggressively mountaineering charges in a pivot reminiscent to early 2019, the “Mad Money” host stated that doesn’t seem like the case after Fed Chair Jerome Powell’s Jackson Hole speech. The main U.S. inventory indexes have fallen for 4 straight days following Powell’s remarks Friday morning.
“We’re now in ‘good news is bad news’ mode, because the Fed’s not going to stop bringing the pain until we see real deterioration … in the economy and a very different landscape from the mall to the store to the house to the yacht and the car lots,” Cramer stated.
Cramer stated that from his perspective, he sees loads of indications that inflation is already slowing down. However, he acknowledged that it might not have come down sufficient for the Fed to halt its aggressive efforts to revive value stability.
“Sure, we’re enjoying a major collapse in so many important commodities,” Cramer stated. “There’s more availability for pretty much everything, and the only real sticking points these days come down to parts stuck in China or labor shortages that were hard to see coming or certain periodic spikes in oil. Powell’s making real progress, but he’s still got a long way to go.”
Source: www.cnbc.com”