CNBC’s Jim Cramer expects Federal Reserve Chairman Jerome Powell’s inflation outlook to be more accurate than bond traders betting on sustained growth and pushing higher Treasury yields.
Cramer’s comments about “Squawk on the Street” came after the 10-year Treasury yield rose to 1.75%, a level not seen since January 2020, continuing a bond sale that shook investors. shares this year. Yields move in the opposite direction to prices. Bonds are driven by concerns that more stimulus to Covid in addition to an already recovering economy will trigger worrying inflation. The 10-year yield started the year at less than 1%.
“It happens very quickly and I think this is the bond market that says, ‘You don’t know what you’re doing, Jay Powell,'” Cramer said. “Well, let me tell you something, Mr. Bond Market, you’re going to be completely wrong.”