Jim Kramer said Wednesday he believes inflationary pressures in the U.S. can be eased without raising Federal Reserve interest rates.
“Be patient, don’t panic. We’re getting there. The seeds of deflation are being planted as we speak … and the flowers will soon be known to you, to everyone except those who want to bet against the Fed. And capitalism,” he said. Mad Money’s lead, after the Labor Department announced earlier in the day that consumer prices were slightly higher than expected in September.
Kramer noted that he was particularly interested in the bond market’s attitude towards the latest inflation rate, as the 10-year Treasury and 30-year Treasury figures “show that inflation should be circulating around the world. “gathered.
“If it’s true that the Fed is really on the verge of tightening, the bond market has a ridiculous way of showing it,” Kramer said. “Perhaps some people are thinking that inflation may soon peak, which could be one of the latest red numbers in the CPI.”
Kramer said he sees signs that there will be changes in parts of the economy that are experiencing inflationary pressures.
For example, Kramer points to technical analysis, where oil prices can fluctuate dramatically. He said another commodity he is closely monitoring is board, which will also help speed up delivery and reduce packaging costs.
“It’s not just a board,” said the former hedge fund manager. “If you look at what analysts are predicting for chemical companies – and keep in mind that these are the companies that make up the building blocks of American industry – they’re all expecting a downturn by 2022.
In addition, the Biden administration is taking steps to ease port congestion, and Kramer said used car prices, which have been a major driver of inflation this year, were “slightly lower” in September. Housing sales are also cooling, he said.
“[If] What I’m saying is that it happens, which means you have to forget about temporary inflation and get used to the new term. … This is called the highest inflation, ”Kramer said. – As it turns out, we don’t need the Federal Reserve to destroy the economy to save us from inflation. If there is enough time, capitalism will solve the problems on its own. “