CNBC’s Jim Cramer said Thursday that a big driver of inflation is consumer willingness to spend money to reopen the economy — a fact that isn’t reflected in data studied by the Federal Reserve and Wall Street.
“They don’t care about higher rates. They have savings because they’ve done nothing for two years,” He said. “My greatest concern right now is that the collected data cannot capture the nature of this…a one-time rapture.”
Stocks fell on Thursday after a strong start to the week that faded on Wednesday. Investors are looking forward Friday’s non-farm payrolls report was released to gauge the size of the Federal Reserve’s next rate hike.
If job and wage growth is stronger than expected, the Fed is likely to continue its aggressive campaign course.
While the increase in travel this summer showed that Americans were eager to engage in retaliatory travel after the easing of Covid restrictions, some are now facing it.”stagnation stressDiminishing incentive to continue making smart financial choices to prepare for the challenging economic times ahead.
Cramer indicated that he anticipates consumers’ need to spend to eventually run out, although that may not happen any time soon.
“A year from now, there’s probably no euphoria. It’s going to end. They’ll have spent their excess savings. And that’s exactly when interest rates are likely to hit their maximum,” Cramer said.
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