CNBC's Jim Cramer on Tuesday said that inflation is coming down at a good pace as he called out Federal Reserve leaders for hawkish comments that are
CNBC’s Jim Cramer on Tuesday said that inflation is coming down at a good pace as he called out Federal Reserve leaders for hawkish comments that are dragging down the market.
“While we hear Fed officials and hedge fund managers and strategists opine about how the Federal Reserve will have to double the federal funds rate to stop runaway inflation, ask yourself which commodities, which goods they’re actually talking about,” the “Mad Money” host said.
Chicago Fed President Charles Evans said Tuesday that he hopes for smaller interest rate increases going forward, starting with a half-percentage point raise in September followed by quarter-percentage point hikes until the start of the second quarter next year.
In contrast, San Francisco Fed President Mary Daly said the central bank is “nowhere near almost done” with interest rate increases, and Cleveland Fed President Loretta Mester warned that policymakers are not in a position to change their inflation-fighting stance.
Cramer pointed to falling prices in commodities including lumber, copper and aluminum to illustrate his point. He acknowledged that oil is still high, but reminded investors that gas prices have come down at the pumps.
Job openings fell in June to their lowest level since September 2021, suggesting the market is beginning to slow. In addition, inventory gluts at stores like Walmart mean there’ll be cheaper prices for goods on shelves, he added.
“I don’t know how far prices have to fall before these people notice,” Cramer said.
www.cnbc.com