Cramer Says Fed Rate Cut to Give New Leg to Bull Market

CNBC’s Jim Cramer said Thursday that Federal Reserve Chairman Jerome Powell’s interest rate-cut hints could spark the beginning of a “new leg to the bull” market in stocks.

“We change the inverted yield curve back to where it should be, our rates are way too high, and next thing you know we’ve got a real bull market going,” Cramer said on “Squawk Box. ” “I think that’s going to happen, a new leg to the bull.”

U.S. stocks opened higher Thursday on Wall Street after the S&P 500 on Wednesday briefly broke above 3,000 for the first time ever before finishing just shy of another record close. The S&P 500 went back above 3,000 early Thursday.

Powell on Wednesday gave stocks a boost, bolstering the case for a rate cut later this month, in an appearance before the House Financial Services Committee.

Cramer said later on “Squawk on the Street ” that Powell should be cutting rates despite this week’s positive corporate earning reports “because there is enough that is weaker in the economy” and inflation remains persistently low.

Powell’s inflation target “is not going to be met,” the “Mad Money” host added.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza