CNBC’s Jim Cramer defended on Tuesday Federal Reserve President Jay Powell and said the depressed state of previously inflated stocks shows the Fed chief is on track to curb inflation.
“I’m sick and tired of the critics who keep trying to belittle or humiliate Jay Powell, the Fed chief who … probably did more to save us from a pandemic-induced depression than anyone else in the government. They behave as they should have. Powell known omicron would not require a block, “the”crazy money“said the host.
“Jay Powell measures his words. He wants to get some air from everything I just mentioned and guess what, if you look at the stock market, sadly, for the bulls, or maybe for the sake of the economy and the country, he is winning. , “ He added.
The S&P 500 gained 0.48% Tuesday while the Dow Jones Industrial Average rose 0.20%. The Nasdaq Composite was up 0.22%.
Tuesday’s gains come as all eyes are on the Fed, that is expected Wednesday to raise interest rates by 50 basis points and set a roadmap for tightening their balance sheets.
Cramer at the beginning of the show highlighted groups of shares “that must turn around if we are to achieve a sustainable rally and get out of this miserable period”. He cited real estate, finance, e-commerce and semiconductor chip companies as some examples of stocks that are hit hard despite having fundamentals that are in “fabulous shape”.
“The endless cloud IPOs and SPAC stocks were the most inflated part of our economy and ultimately crushed the market,” he said, referring to the initial public offerings and special purpose acquisition companies.
He added that while some stocks such as financials rose on Tuesday, it was short-term and shouldn’t give investors hope that those stocks have entered a long-term rally.