Why Jim Cramer Says Inflation Is Throwing A No-Hitter Against Fed Chair Jerome Powell: 'He's Not On Base Yet'

Zinger Key Points
  • Jim Cramer says inflation is throwing a no-hitter against Fed Chair Jerome Powell.
  • "He's not on base yet. He has not gotten on base in the fight against inflation," Cramer says.

The SPDR S&P 500 SPY sprung higher Wednesday afternoon as the Federal Reserve issued its fourth straight 0.75% rate hike, but comments from Fed Chair Jerome Powell following the release took the air out of the markets. Now Jim Cramer is questioning how the Fed should be viewed. 

"They put out a statement and it's now been contradicted by Powell in the press conference almost every time," Cramer said Thursday on CNBC's "Squawk On The Street."

What To Know: The Fed statement included language surrounding the cumulative tightening of monetary policy and the lag with which it affects inflation, which sent stocks racing higher on the release. 

In a press conference following the statement, Powell highlighted new data and the market traded sharply lower.

"We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected," Powell said. 

Related Link: Why The Fed's Language On Interest Rates Is Moving Markets Wednesday: 'We Will Stay The Course Until The Job Is Done'

Cramer's Take: Although the way the Fed delivered its thoughts was contradictory, Cramer said he believes its approach is going to prove to be appropriate based on last month's data. 

"I do think that October, we're going to find out, was an incredibly weak month ... therefore he is right to say look there's a lag," Cramer said. 

The problem is that Powell doesn't have the "ammo" to stop tightening, he said, and the market is looking for a reason.

"When you're Powell, you gotta give them some reason, you need a reason ... I will tell you right now he's being no-hit by inflation," Cramer said. 

"He's not on base yet. He has not gotten on base in the fight against inflation."

See Also: US Jobless Claims Still At Historic Lows, But Will Fed's Rate Hike Spur Layoffs?

SPY Price Action: The SPY was down 0.21% at $374.10 at the time of writing, according to Benzinga Pro

Photo: Anne and Saturnino Miranda from Pixabay.

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Posted In: NewsEcon #sTop StoriesFederal ReserveMediaCNBCJerome PowellJim Cramer
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