Fed can’t soothe a market where ‘absolutely nothing is foreseeable’

When you add up all the distortions, it's insanely hard to predict consumer behavior, says Cramer

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CNBC’s Jim Cramer on Monday stated the Federal Reserve can not get a clear vision of the economy today since macro elements and unforeseeable human habits are misshaping the marketplaces.

“Nothing in this economy is working like it’s supposed to, nothing is predictable. History’s a terrible guide right now because we’ve never been in this situation before,” stated Cramer.

Over a year into the war in Ukraine, food and oil costs are enormously deformed, according toCramer Both of these markets have actually been synthetically determined by geopolitics instead of the natural characteristics of supply and need.

Meanwhile, automobile need is stubbornly high while the economy is simultaneously down. That’s since the supply stress of semiconductors decreased automobile production developing a stockpile of vehicle need.

The economy likewise has actually been twisted by pandemic-era federal government monetary help like joblessness aids and trainee loan forgiveness, which has actually intensified inflation.

Fears of an economic downturn likewise have actually caused purchasers acquiring 10- year Treasury bonds “at absurdly low levels,” stated Cramer, which lowered home loan rates and led real estate need and costs to swell even as rates get greater.

Finally, more individuals than ever are accepting the values of “you only live once,” Cramer stated. They are coming out of the pandemic and leaving the task market, rising travel need and developing all sorts of unforeseeable patterns.

With all of these elements, Cramer stated, “it’s insanely hard to predict consumer behavior, which is why the Fed’s moves to date seem to have little impact.”

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Cramer says there are just too many distortions right now