Jim Cramer says CPI number will probably prevent Fed from cutting rates in March

by | Jan 27, 2024 | Inflation Hedge | 29 comments

Jim Cramer says CPI number will probably prevent Fed from cutting rates in March




‘Mad Money’ host Jim Cramer talks today’s CPI report, what it means for the markets, and the kick off trading day for spot bitcoin ETFs….(read more)


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The Consumer Price Index (CPI) is a key economic indicator that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI is often used by economists, policymakers, and investors to gauge inflation and make decisions about monetary policy.

Recently, the CPI number for January was released, and it has significant implications for the Federal Reserve’s upcoming decision on interest rates. According to renowned investor and CNBC personality Jim Cramer, the CPI number makes it unlikely that the Fed will cut rates in March.

The January CPI data showed that consumer prices rose 0.6% from the previous month, surpassing economists’ expectations. This increase was driven by a surge in gasoline prices and a rise in the cost of food, particularly in the restaurant and dining sector. Additionally, core CPI, which excludes the volatile food and energy prices, rose 0.3%, the largest increase in nearly a year.

In light of these inflationary pressures, Cramer believes that the Fed will be hesitant to cut rates at its upcoming meeting in March. Historically, the central bank has used interest rate cuts as a tool to stimulate economic growth and mitigate the effects of a downturn. However, in the current environment of rising prices, a rate cut could exacerbate inflationary pressures and undermine the Fed’s credibility in maintaining price stability.

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Furthermore, Cramer argues that the Fed’s decision will be influenced by its dual mandate of promoting maximum employment and stable prices. With the unemployment rate hovering near historic lows and inflation edging up, the central bank will likely prioritize price stability and opt to keep rates on hold.

The CPI data has also impacted market expectations, with futures markets pricing in a reduced likelihood of a rate cut in March. Investors are now bracing for the possibility of a more hawkish stance from the Fed, which could lead to higher bond yields and a stronger dollar.

In conclusion, the latest CPI number has significant implications for monetary policy and the broader economy. Based on the data and market dynamics, Jim Cramer believes that it is unlikely that the Fed will cut rates in March. As investors await the central bank’s decision, they will be closely monitoring inflationary pressures and the Fed’s stance on interest rates.

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29 Comments

  1. @_echo_off

    Greatest wealth transfer in history, spoiler its not going to the middle class or poor. Buy gold

  2. @StanleyIpkis-nf9gn

    I wish it was 3.4%. My expenses say it's much higher. Glad they're not still saying it's going down.

  3. @user-jb3fu5fk8o

    The only thing truly up was car insurance. Actually look at the data. If you remove car insurance, we wre alrweady at the FEDs goal. Media is fear mongering like usual. Cuts are coming soon!

  4. @doc7115

    It’s still consensus because traders actually analyze the data and put money on the table, unlike you. You can just look at the headline and say whatever you want out of your small brain. Inverse Cramer is a thing.

  5. @cryptoguy2183

    I always do the opposite of what cramer does and it makes me money.

  6. @user-eq6kl5fd8m

    Don't invest more than you can afford to lose. trading can be volatile, so it's important to only invest money that you're comfortable with potentially losing.

  7. @rogerwilliams8326

    This 2024 Bitcoin halving event, we stand at a crucial crossroads in the world of cryptocurrency. This significant occurrence promises to profoundly affect Bitcoin's market value and ripple across the broad expanse of digital currencies. In this critical phase, the importance of strategic trading acumen and the diversification of investment portfolios cannot be overstated. In the midst of these shifting market dynamics,Amidst this, the insights of a knowledgeable guide like Ms. Diane Knapp can be crucial. His expertise in navigating the nuances of cryptocurrency investments could be the key to understanding and making the most of these emerging financial trends..

  8. @jeezustheone

    Talk about functioning alcoholic

  9. @syedshah7510

    Jan CPI will be below 3%

  10. @DRAGBALZabu

    Cramer is on fire!

  11. @Bradgilliswhammyman

    All signs point to peak bubble irrational exuberance.

  12. @hparekhify

    Which means FOMC will definitely cut rates.
    Do opposite of Cramer recommendations

  13. @keto6789

    Cramer is a bear. He was disappointed with the rally yesterday and today he's excited again. He's probably short

  14. @SimonTemplarDude

    Cramer!! Glad you're doing better sir after your back injury

  15. @TurdFergusen

    they gonna drag their feet until real estate corrects

  16. @brett7989

    Why would the fed be cutting in march anyway if the cpi came in better, that makes no sense at all. The fed isn’t stupid

  17. @Boxofdonuts

    Btc is a very well established ponzi. Eth has real utility

  18. @user-mj1tu2qs7q

    Sounds like a red day with the way banks claim they’re losing money. I feel like a lot of these banks especially BACK of America got Covid cash, 1 trillion missing

  19. @DigitalSteel

    You heard him, never has there been a more profound reason to believe that the fed will absolutely cut rates in March

  20. @aguy3203

    Only the ownership class needs rate cuts

  21. @roy1583

    Buy other coins besides bitcoin in other words

  22. @duffduck

    the rugs going to get pulled out from crypto holders and these criminals are going to run off with the money.

  23. @jon4823

    March it is

  24. @cynicalprick2

    REVERSE CRAMER ALWAYS RIGHT

  25. @heykisskid

    Wall Street's predictions were incorrect, and Powell is expected to return to rate hikes this summer. By the way, ARC stock has a strong buy signal with a solid dividend of 6.5%.

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