Fed officials’ aggressive inflation words are undermining the market

CNBC’s Jim Cramer said on Tuesday that inflation is falling at a good pace, while calling on Federal Reserve leaders for aggressive comments that will drag the market down.

“As we hear Fed officials and hedge fund managers and strategists say how the Federal Reserve will have to double federal fund rates to stop runaway inflation, ask yourself what commodities, what commodities they’re actually talking about,” the ” Mad Money” said host.

Chicago Fed President Charles Evans said on Tuesday he hopes for smaller rate hikes in the future, starting with a half-point hike in September, followed by a quarter-point hike through the start of the second quarter next year.

By contrast, Mary Daly, president of the San Francisco Fed, said the central bank is “not nearly done” with rate hikes, and Cleveland Fed president Loretta Mester warned that policymakers are unable to change their stance on inflation. change.

Cramer pointed to falling prices of commodities, including wood, copper and aluminum, to illustrate his point. He acknowledged that oil is still high, but reminded investors that gas prices at the pumps have fallen.

Job vacancies fell to their lowest level since September 2021 in June, suggesting that the market is beginning to slow down. In addition, excess inventory at stores like Walmart means there will be cheaper prices for goods on the shelves, he added.

“I don’t know how far prices have to fall before these people notice,” said Cramer.

Leave a Comment