Jim Cramer says the Fed is using a common-sense approach to break the cycle of inflation.
The Federal Reserve’s decision Wednesday to raise interest rates is a good thing for the stock market, Jim Cramer told his Mad Money viewers Wednesday.
The Fed isn’t being reckless, Chairman Jay Powell is using a common-sense approach to break the cycle of inflation so stocks can go higher.
We’ve been in a bear market since November because companies are paying more for just about everything, which leads to lower profits. That’s why tamping down inflation is a good thing. The Fed can’t wave a magic wand and make inflation disappear, but they can curb demand and promote stability, giving supply time to catch up and return to equilibrium.
Those that worry about the yield curve aren’t stock investors, they’re mostly bond traders. The yield curve has little to do with the earnings of individual companies. So instead of fretting whether the Fed will make six moves this year or seven, focus on what rake hikes mean for the companies in your portfolio. Most of our economy will do better once their supply chain issues have been resolved.
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