PC: The European Newswire

Cramer says Fed officials’ statements on inflation are dragging down the market.

Jim Cramer, the founder of CNBC, said on Tuesday that inflation is on the downswing and he pointed out hawkish remarks by Federal Reserve officials that are harming the market.

“While we hear Fed officials and hedge fund managers and strategists opine about how the Federal Reserve will have to double the federal funds rate to stop runaway inflation, ask yourself which commodities, which goods they’re actually talking about,” the “Mad Money” host said.

President Charles Evans of the Chicago Fed said Tuesday that he hopes for smaller interest rate increases going forward, starting with a half-percentage point increase in September, and a quarter-percentage point hike in the second quarter of next year.

The San Francisco Fed’s Mary Daly said she was “nowhere near done” with interest rate increases, and Cleveland Fed President Loretta Mester warned that policymakers are not in a position to change their inflation-fighting approach.

Cramer drew on falls in the prices of goods like lumber, copper, and aluminum to demonstrate his point. It’s acknowledged that the price of oil is still high, but gas prices at the pump have been coming down.

Employment numbers fell significantly in June to a level not seen since September 2021, suggesting the job market is starting to stagnate. Additionally, Walmart’s inventory gluts will mean cheaper prices for goods on shelves, he said.

“I don’t know how far prices have to fall before these people notice,” Cramer said.

About Jim Cramer