CNBC’s Jim Cramer said Tuesday it almost seems like Jerome Powell is being aggressive on his path to raise interest rates because the Federal Reserve chair wants throw a wrench in President Donald Trump‘s agenda.
“Maybe he wants Trump to lose,” Cramer argued on “Squawk on the Street,” questioning Powell’s motives. The Fed declined to respond to those comments. The White House was not immediately available.
The Fed has already hiked rates three times this year, and one more is expected in December. Earlier this month, Powell said rates are a long way from so-called neutral.
Cramer also reiterated on Tuesday his argument that the central bank should hike rates one more time this year and then “wait and see.” Powell “has to hike in December and then say, ‘pause,'” he added.
On Monday night, Cramer said the only thing that can stop the market’s recent plunge is the Fed changing course on interest rates or Trump ending his tariffs.
“My main fear is that we could have a mini version of 2008 if the Fed doesn’t change course,” Cramer said. “If Fed chief Jerome Powell actually starts listening to the stock market and wakes up to the damage that [Trump’s] tariffs can do to the economy, then maybe he’ll shift gears, just like [then-Fed Chairman Alan Greenspan] did in ’98.”