CNBC’s Jim Cramer said on Friday he thinks the Federal Reserve needs to be transparent about its plans, particularly with regard to the restaurant chain CavaThe extremely successful IPO, he says, is a sign that the market is warming up.
Cramer believes a thriving IPO market could lead to a cash inflow on Wall Street and a hiring frenzy — the last thing the Fed wants when it’s trying to cool the economy.
“The Fed needs to stop being so sweeping and opaque; what we need from her is tight transparency,” he said. “Otherwise, animal sentiment will kick in again and companies will start a hiring boom, which is the last thing the Fed wants.”
He acknowledges that some might argue that the economy is cooling off on its own. food giant Hook I just reported that grocery costs are falling across the board, and Cramer said he’s seeing numbers that suggest the cost of used cars and clothing are also falling.
According to Cramer, however, there is a big problem: the living space. Cramer believes the Fed needs to come up with a plan to weaken the housing market. He said he believes the Fed’s ultimate plan is to increase unemployment so that many young people live with their parents, as has happened in the past when unemployment was widespread.
But he called the plan “intricate and, frankly, heartless,” and while the central bank doesn’t control long-term interest rates, he believes there is another way to bring home prices down.
“In my opinion, maybe the best thing the Fed can do is find a strategy that involves building more houses and building more apartments. However, the only way to do that is to stop scaring the people who work and the contractors.” ,” he said. “We have a massive shortage of homes in this country, but who the hell would ever.” build more if he thinks the Fed wants to destroy the entire economy once these homes are built?”
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