CNBC’s Jim Cramer said Thursday that Federal Reserve Chairman Jerome Powell’s remarks on inflation the day before confirmed that inventors should not exit the market due to recession fears.
“Unless the super hawkish Fed leaders who want to raise short rates from 5% to 7% are silenced, we need to be ready with a quarter foot out the door,” he said, later adding, “Yesterday Powell…muzzled him for me, that’s a green light to stay in action.
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Powell said Wednesday that the central bank could begin to slow its pace of interest rate hikes as early as December, triggering a rally that died out on Thursday ahead of a key labor report.
Nonetheless, reading the “Fed tea leaves” will continue to be key in determining which areas of the economy will be crushed by central bank tightening and which will remain untouched, according to Cramer.
He called on Powell to crush speculative stocks that ballooned during the height of the pandemic and discourage crypto investments.
“It’s a back and forth until we get some indication as to whether he’ll be ready to declare victory after crushing speculation, hoarding, profiteering and inefficiency without ruining the rest. of the economy,” Cramer said.