CNBC’s Jim Cramer on Tuesday called on Federal Reserve Chairman Jerome Powell to implement aggressive interest rate hikes to tame inflation.
“Jay Powell can’t solve the war in Ukraine. He can’t get more oil off the ground. … The same goes for inflation, the other big source of food,” ,mad Moneysaid the host.
They have to hit us with some monster rate hikes to cool things down, I expect at least $200 billion a month in bonds – double the current schedule – just a problem, he said. Not to fix,” he said.
His remarks came as the Fed began its June meeting to decide the size of the next interest rate hike, which will be announced on Wednesday.
The Fed, which raised interest rates by 25 basis points in March and 50 basis points in May, will also begin unloading some of its balance sheet on Wednesday in an effort to draw trillions of dollars of liquidity out of the financial system.
Investors and central bank policy makers alike Ready for 75-basis-point rate hike on Wednesday. The market reacted accordingly As the S&P 500 slipped further into bear territory on Tuesday, the Nasdaq Composite and the Dow Jones Industrial Average also remained volatile.
Inflation at new high in May Prices up 8.6% from last year What is driving the market’s recent decline, in the fastest growth in four decades.
Cramer has advocated for a 100-basis-point rate hike in recent weeks, Urges Powell to take strong action He even argued that the Fed chief is not to blame for the current state of inflation.
“In retrospect, the Fed provided more liquidity than it needed. It should have stopped buying bonds more than a year ago. … – which is not much – we should stop blaming Powell for all things inflation Will happen.” Kramer said.
