Investors should not worry about the Federal Reserve raising interest rates after the release of the latest US jobs report, said Jim Cramer of CNBC.
The business hired 916,000 workers last month, according to Labor Department data released Friday. However, the report also showed that average hourly earnings fell by 4 cents in March.
Wages will be a key component for the Fed to assess inflation, the Crazy Money host said.
“Professional money managers want growth without wage inflation, and that’s exactly what we have … stock nirvana,” Cramer said. “This type of work report gives Fed Chairman Jay Powell the green light to keep rates low.”
“I like [Powell’s] yes more than the inflationists right now, because nothing is more important for stocks and bonds than that non-firm Department of Labor report we just received on Friday, “Cramer said.
Cramer also pointed to a drop in oil prices as a reason why the Fed keeps rates historically low. West Texas Intermediate futures fell more than 4% on Monday.
These elements will allow Powell to stick to his plan to keep rates low until the economy recovers from last year’s pandemic recession, according to Cramer.
The comments came after shares rallied to open the first full week of the second quarter. The S&P 500 and the Dow Jones industrial average each rose more than 1% to new records. The technologically strong Nasdaq Composite outperformed the Dow and S&P 500, up 1.7%, and now has a 3% discount from the February record.