In light of a disappointing jobs report released on Friday, Jim Cramer has urged the Federal Reserve to implement a cut in interest rates.
What Happened: The nonfarm payroll growth for July was a mere 73,000, falling significantly short of the anticipated 100,000. Additionally, the figures for May and June were revised downwards by a total of 258,000.
The unemployment rate for the nation rose to 4.2% last month, as forecasted, while wages saw a modest year over year increase of 3.9%.
During a show on CNBC, Cramer voiced his concerns, stating, “We have very little job growth, and we have wages that are not going up. That is when you cut.” He also criticized Federal Reserve Chairman Jerome Powell for his delay in implementing rate cuts.
“I’ve been a big backer of Jay Powell. But this is a number that says, ‘Jay, you didn’t need to wait’ to cut rates,” Cramer added.
Also Read: Powell Puts Breaks On September Rate Cut—And Trump Triggers A Metal Market Crash
This disappointing jobs report comes on the heels of the Federal Reserve’s decision to keep short-term rates between 4.25% and 4.5% for the fifth consecutive meeting, despite President Donald Trump‘s insistence on a rate cut.
Trending Investment Opportunities
The market is now forecasting a higher likelihood of a rate cut at the central bank’s meeting in September.
The dismal jobs data, along with President Trump’s revised tariff plans, has sparked a substantial market sell-off. The S&P 500 and Nasdaq experienced declines of over 1.5% and 2%, respectively, during morning trading.
Why It Matters: The sluggish jobs growth and stagnant wage increases underscore the challenges facing the U.S. economy. The Federal Reserve’s reluctance to cut rates, despite mounting pressure from the White House, has raised concerns about the central bank’s ability to stimulate economic growth.
The market’s reaction to the jobs report and revised tariff plans indicates growing investor uncertainty. The potential rate cut in September could provide a much-needed boost to the economy, but its impact remains to be seen.
Read Next
Donald Trump Announces 15% Tariff Trade Agreement With EU, Ending Months Of Trade Uncertainty
Image: Shutterstock
Source link
