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CNBC’s Jim Cramer on Tuesday rebuffed claims that the Federal Reserve’s very accommodative monetary policy is the main reason Wall Street continues to recover from last year’s massive selloff due to the pandemic.
“Every time the shares go up, you get a legion of commentators… squeeze,” the host of “Mad Money” said. “This is pure idiocy.”
Cramer’s comments came shortly after the Dow Jones Industrial Average and S&P 500 set new closing highs on Tuesday afternoon. The tech-rich Nasdaq Composite, which fell about 0.5% on Tuesday, posted its most recent 52-week high last week.
“Averages were everywhere today … but let me be clear on one thing: Business is doing well in this country thanks to a multitude of ridiculously positive forces, and it’s not just the Fed.” , Cramer said. He suggested that congressional budget makers may be playing a bigger role in the equation right now than the central bank, which buys $ 120 billion in assets per month and has kept interest rates close to zero since March 2020.
“You have retailers making their fortunes on child tax credit payments, the banks taking advantage of the opportunity to make more money with your deposits, and the [industrials] big winner of the infrastructure bill just passed by the Senate, ”Cramer said. “These forces are huge, people. They overshadow all that talk and nonsense about cutting Fed interest rates or short-term interest rates. “
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