Fed wins against inflation despite hot June CPI number, says Jim Cramer

0

CNBC’s Jim Cramer said Wednesday that if consumer prices rose more strongly in June than Wall Street expected, the Federal Reserve is on course to beat inflation.

“I think we have a real chance of setting up … a short-term bottom here given that the Federal Reserve can probably set up another big rate hike and then declare victory,” the host said. “Mad Money”.

“I know it sounds crazy to say we’re winning the war on inflation when the CPI, the consumer price index, rose 9.1% last month, but you know what, I I believe so,” he added.

The consumer price index, which measures the prices of everyday goods and services in the United States, rose 9.1% in June from a year earlier, according to the Bureau of Labor Statistics.

The major indexes closed slightly on Wednesday after faltering during the trading session.

Cramer said he believed inflation had peaked despite the scorching inflation report due to the recent decline in oil and other commodities.

“I don’t think aluminum, copper, steel and wood should necessarily be considered consumer-facing, but I will say this: look below. These products are all in crash mode,” a- he declared.

He added that other indicators that consumers are starting to cut back on spending, including the inventory glut that is challenging retailers and a slowing housing market, support his theory.

“All of this tells me that anyone who looked at today’s CPI number and said, ‘Hey, I have to sell because the big deal is coming, it’s time for the Fed to raise rates to 10 % “…I think you’re gonna get it wrong,” he said.

Share.

Comments are closed.