Jim Cramer says the economy could be cooling enough for the Fed to dial back its inflation battle

Jim Cramer says the economy could be cooling enough for the Fed to dial back its inflation battle


Jim Cramer says the economy could be cooling enough for the Fed to dial back its inflation battle

CNBC’s Jim Cramer on Tuesday said that recent economic data shows the Federal Reserve could start taking a softer approach to inflation.

“This rampant inflation may not be as malignant as the hawks seem to believe, and that means the Fed might ratchet down the next” interest rate increase, he said.

In September the Fed interest rates by 0.75 percentage points for the third consecutive time and indicated it would continue to do whatever it takes to tamp down inflation.

However, Cramer said that two data points suggest the economy’s cooling:

  1. The Chicago Purchasing Managers Index in September fell to its lowest level since 2020.
  2. Job openings tumbled by more than 1.1 million in August, marking the biggest single-day drop since April 2020. 

Stocks rose sharply on Tuesday following the release of the job openings report, continuing the rally from the prior trading session. The S&P 500 saw its largest two-day rally since March 2020.

Cramer also credited the U.S. dollar’s declining value for his hope that the Fed could take a less aggressive approach for its next rate hike. 

The dollar retreated on Tuesday as the 10-year Treasury yield slumped after Australia’s central bank took a smaller-than-expected interest rate increase. The U.S. dollar had surged in recent months, putting pressure on domestic companies that conduct business overseas.

“Maybe a weakening dollar can help offset the domestic weakness, softening the blow of a potential recession and bolstering the earnings of our exporters,” Cramer said.

Jim Cramer says the market is in its 'high peaks region'

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

Newark air traffic controllers lost contact with planes again in overnight outage
Business

Newark air traffic controllers lost contact with planes again in overnight outage

A man stands outside Terminal C with the airport control tower in the background at Newark Liberty International Airport, on May 6, 2025 in Newark, New Jersey. Andres Kudacki | Getty Images Air traffic controllers who guide planes in and out of Newark Liberty International Airport lost radar and communication with aircraft before dawn on […]

Read More
ESPN will call its forthcoming flagship streaming app simply ‘ESPN,’ sources say
Business

ESPN will call its forthcoming flagship streaming app simply ‘ESPN,’ sources say

A general view of the ESPN logo on a camera at Simmons Bank Liberty Stadium in Memphis, Tennessee, on April 6, 2024. Wes Hale | UFL | Getty Images At long last, ESPN has chosen a name for its upcoming all-access streaming service. Ready? It’s “ESPN.” Disney’s sports media division will announce the new — […]

Read More
Something ‘striking’ is happening with apartment renters
Business

Something ‘striking’ is happening with apartment renters

Renting has its benefits. It’s usually cheaper than buying a home, and it offers the freedom of moving without much hassle. That’s why about half of apartment renters in large urban markets usually move when their leases expire. But that is not happening now. The low turnover is “striking,” according to real estate analyst Alex […]

Read More