CNBC’s Jim Cramer looked at last week’s nonfarm payrolls report and highlighted the booming economy, telling investors not to expect imminent rate cuts from the Federal Reserve.
“If you’re hoping for a rate cut from the Fed…I say don’t hold your breath. This economy doesn’t need it,” he said. “Just be happy we’re not getting any more rate hikes.”
For Cramer, this monthly report contains the most important government data, adding that he has analyzed it for more than a decade and that it has never lost its importance.
Nonfarm payrolls – the number of government and private sector jobs – increased by 303,000 in March, surpassing the Dow Jones estimate of 200,000. The unemployment rate edged closer to 3.8 %, as expected. Cramer called the country an “economic miracle,” asking investors to imagine what the landscape might look like if the Fed tried to create jobs rather than keep rates high to dampen growth.
Cramer also commented on what this report means for the state of the consumer, something that is always a priority on Wall Street as employment impacts consumer spending, he asserted. The report shows employment growth in the leisure and hospitality sector, returning to pre-pandemic levels in February 2020. For Cramer, this means investors can worry less from one consumer to the next. short on cash, saying the data further points to a booming economy.
“We have a robust economy, so I’m a lot less worried about next earnings season,” Cramer said. “When I check the balance sheet, historically, this kind of job creation without a ton of inflation is about as good as it gets, regardless of what the short-term interest rate situation is.”
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