CNBC's Jim Cramer reviewed the nonfarm payrolls report last week, highlighting the thriving economy and urging investors not to expect imminent interest rate cuts from the Federal Reserve.
“If you're hoping for Fed rate cuts…then maybe you shouldn't hold your breath. This economy doesn’t need them,” 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 been analyzing it for more than a decade and it has never lost its importance.
Nonfarm payrolls — the number of government and private sector jobs — rose by 303,000 in March, surpassing the Dow Jones estimate of 200,000. As expected, the unemployment rate approached 3.8 percent. Cramer called the country an “economic miracle” and urged investors to imagine what the situation would be if the Fed tried to create jobs instead of keeping interest rates high to slow growth.
Cramer also commented on what this report means for the state of consumers, which is always an issue on Wall Street because employment impacts consumer spending, he claimed. The report showed employment growth in the leisure and hospitality industry returning to pre-pandemic levels in February 2020. For Cramer, that means investors have less to worry about a cash-strapped consumer and says the data continues to point to a booming economy.
“We have a robust economy, so I'm much less worried about the upcoming earnings season,” Cramer said. “When I look at the balance sheet, this kind of job creation without a ton of inflation is historically as good as it's ever been, regardless of what short-term interest rates are.”
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