Prominent market commentator Jim Cramer said without a "well-deserved" crash in cryptocurrency and a sign of higher unemployment acknowledged by the Federal Reserve Chair Jerome Powell, the current consumer price inflation reading has to be seen as a one-off number.
Cramer’s statement comes following the lower-than-expected inflation figure for November at 7.1% as against the estimated 7.3%. Major Wall Street indices ended Tuesday’s session in the green with the SPDR S&P 500 ETF Trust (NYSE:SPY) closing 0.76% higher while the Vanguard Total Bond Market Index Fund ETF (NASDAQ:BND) closing 0.68% higher.
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Cramer noted that one of the obstacles for the central bank is that speculative assets have managed to stay afloat, according to a CNBC report. Bitcoin (CRYPTO: BTC) breached the $17,900 mark on Tuesday, hitting a one-month high, following the release of the inflation reading.
On Wages: The market expert believes while the inflation data is a good sign for the central bank, it needs to tame inflation in more areas of the economy, specifically in wages. This means there needs to be much more wreckage in the job market, which is yet to be seen, Cramer added, according to the report.
“Today should have been a huge victory for Jay Powell on a speculation front because part of beating inflation is draining out the speculative juices in the economy. Yet, there’s still a ton of juice left to be drained from crypto,” Cramer said.
“The Fed has to start somewhere in the fight against inflation and today’s a good beginning, but … [Powell’s] got to crush inflation for good,” he added.