Charts suggest inflation could soon come down ‘substantially,’ Jim Cramer says

Charts suggest inflation could soon come down ‘substantially,’ Jim Cramer says


Charts suggest inflation could soon come down 'substantially,' Jim Cramer says

CNBC’s Jim Cramer on Thursday said that inflation could soon decline, leaning on charts analysis from legendary technician Larry Williams.

“The charts, as interpreted by Larry Williams, suggest that inflation could soon cool down substantially — soon — if history’s any guide,” he said. 

The “Mad Money” host’s comments come after the Federal Reserve on Wednesday raised interest rates by another 75 basis points and reiterated its hawkish stance against inflation.

To explain Williams’ analysis, the “Mad Money” host first examined a chart of the current Federal Reserve sticky price consumer price index (in black) compared to the burst of inflation in the late seventies and early eighties (in red).

Williams notes that the current trajectory of sticky price inflation has closely hugged this historical pattern, Cramer said. 

He added that when situated in the pattern of inflation in the late seventies and early eighties, current inflation is roughly in the 1980 point of the trajectory — which is around when inflation peaked then.

“Today, unlike back then, the Fed knows exactly how to beat inflation,— and Jay Powell has shown that he’s willing to bring the pain. That means it should peak sooner,” Cramer said.

For more analysis, watch Cramer’s full explanation below.

Watch Jim Cramer break down fresh charts analysis from Larry Williams

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.



Source

Here are the retailers raising prices as Trump tariffs take hold
Business

Here are the retailers raising prices as Trump tariffs take hold

A person picks out clothing in a store as retailers compete to attract shoppers and try to maintain margins on Black Friday, one of the busiest shopping days of the year, at Woodbury Common Premium Outlets in Central Valley, New York, U.S. November 24, 2023.  Vincent Alban | Reuters Consumers who hoped tariffs would not […]

Read More
This is why Jamie Dimon is so gloomy on the economy
Business

This is why Jamie Dimon is so gloomy on the economy

Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled Annual Oversight of Wall Street Firms, in the Hart Building on Dec. 6, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images The more Jamie Dimon worries, the better his bank seems to do. As JPMorgan […]

Read More
Summer rentals in the Hamptons are down 30%
Business

Summer rentals in the Hamptons are down 30%

Key Points Summer rentals in the Hamptons are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals are seeing an even bigger drop and say their rental business is down between 50% and 75%. Some renters may be holding out […]

Read More