Fed’s fight against inflation will beat down ‘shaky’ stocks

CNBC’s Jim Cramer said Friday that the Fed’s attempts to raise interest rates and crush inflation would inevitably lower “previous highs” even for “legal” companies. rice field.

The stock market is “a big risk of controlling inflation. Not only collateral damage, but also [Fed Chair Jay Powell’s] target. Not all stocks, but certainly stocks with an volatile valuation base that were traded on the roof, even for sales and orders. “Flirt“The host said.

“While the Fed waits for the brakes to finish, high-end stocks that previously had no profits and little sales in controlling inflation will continue to fall as they represent another front.” He added.

Shares on Friday fell, albeit not as much as Thursday’s recession, overtaking the rebound after the Fed’s meeting on Wednesday.

Federal Reserve Board Interest rate hike Implementing a larger rate hike at 50 basis points “is not something the Commission is actively considering” to control inflation, he said.

“I don’t think Powell is deliberately trying to curb the irrational enthusiasm of a particular stock: Shopify Also … HubSpotAlso toast Also Bill.com.. They were all legitimate companies, and their reputation was just too high, and the bubbles helped fuel the over-inflated IPO and SPAC bubbles. “

Still, Cramer said that during the Fed’s tightening, high-quality companies with real products, profits and value to shareholders are doing well, and the economy as a whole is strong enough to receive even a 100 basis point rate hike. believe.

“Powell has removed the possibility of a 75 basis point rate hike from the table. I think it’s a mistake …. For me, it’s much better to get over the pain as soon as possible,” he said.

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