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Fed Needs to Raise Rates 100bps Now, Which Could Trigger a Rally - Cramer

Published 2022-06-10, 10:24 a/m
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By Investing.com Staff

Following today's red-hot inflation number, showing an 8.6% year-over-year rise in consumer inflation, CNBC's Jim Cramer is calling for some shock and awe from Federal Reserve Chairman Jerome Powell. Cramer thinks that the Fed needs to raise 100 bps points now, not the 50 bps forecasted by the market.

"I want the Fed to go 100 basis points," Cramer said. "Just get it over with."

Cramer said while Powell is trying to be measured with rate hikes, "measured is not going to cut it anymore."

He added that everyone needs to come to terms with the fact that there will be a recession of sorts. However, the customer may not be the source of it. He said a recession with a strong consumer will take down some companies, but others will thrive.

Cramer thinks the market will rally if Powell does follow through with a 100 bps hike.

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