Investors betting on short-term gains will miss out if Powell ‘wins the game,’ says Cramer

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UKTN’s Jim Cramer advised investors on Wednesday to think about the bigger picture when it comes to the Federal Reserve’s fight against inflation and its effect on the stock market.

“The short-term camp is made up of people who either can’t handle pain or don’t believe in… [Fed Chair Jerome] Powell and want out,” said the host of “Mad Money.”

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“I think Powell will win the game and if he does, we will be on the pitch and the short-termers will be at the bottom of the stands,” he added.

The Fed raised interest rates by 75 basis points on Wednesday and said it will continue its aggressive campaign against inflation.

Stocks closed out the volatile trading session as Wall Street processed the news.

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Recognizing that the market will suffer, Cramer advised investors to bet on the Fed if they want their portfolios to remain intact in the long run.

People who believe in Powell’s view — whom Cramer calls the silent majority — understand that the central bank needs to raise interest rates to avoid hurting even further, he said.

“The silent majority wants to be able to buy a house at a reasonable price without having a bidding war over it,” he said. “The silent majority knows that if Powell doesn’t act now, their stock will lose value when they retire.”

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Jim Cramer breaks down the two broad camps that arise as the Fed fights inflation

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