CNBC’s Jim Kramer said Wednesday that he expects the Federal Reserve to keep raising interest rates until there is clear evidence of a slowing US economy.
While some had hoped that the Fed would soon hold off aggressive rate hikes in the future The pivot reminds us of early 2019The Mad Money host said that did not appear to have happened following Federal Reserve Chairman Jerome Powell’s Jackson Hole speech. Major US stock indexes fell for four consecutive days following Powell’s Friday morning comments.
“Now we are in a ‘good news is bad news’ situation, because the Fed is not going to stop bringing pain until we see a real deterioration … in the economy and a completely different landscape from the mall to the store to the house to the yacht and yard,” Kramer said.
Cramer said he sees plenty of indications that inflation is indeed slowing. However, he acknowledged that it may not have fallen low enough for the Federal Reserve to halt its aggressive efforts to restore price stability.
“Certainly, we’re enjoying a major crash in many important commodities,” Kramer said. “There’s more availability for just regarding everything, and the only real sticking points these days are the stuck parts in China or the lack of labor that’s been hard to see or certain cyclical spikes in oil. Powell is making real progress, but he still has a long way to go.”
