Jim Cramer says Wednesday’s market rally was ‘based on a dream’


CNBC’s Jim Cramer said Wednesday’s rally will likely reverse course as soon as a Federal Reserve official reminds Wall Street of its hawkish stance against inflation.

“By the time a Fed chief explains the obvious, today’s gains will indeed vanish because they are inconsistent with the Fed’s attempts to control inflation. This rally was based on a dream” , did he declare.

Stocks rose on Wednesday as the Bank of England announced it would buy bonds to stabilize the currency market, a day after the S&P 500 hit a fresh low in the bear market.

The two-year Treasury also fell from yielding around 4.3% to 4.1% in what Cramer called an “astonishing” reversal.

“It was like the whole bear market turned into a bull market because another country’s central bank – not our central bank – gave up on fighting inflation,” he said.

And while the Bank of England appears to have at least temporarily abandoned its efforts to tighten the economy, Cramer warned that the Fed is unlikely to do the same, especially since it wants prices and people’s purchasing power goes down.

“In the next two days, we’re likely to hear from a group of Fed officials who will deny that they’ll blink and insist that they have the guts to fight inflation,” he said.

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