CNBC’s Jim Cramer expects the Federal Reserve Chairman Jerome Powell’s inflation outlook to be more accurate than securities brokers who are betting on a sustained increase and raising Treasury yields.
Cramer’s comments on “Squawk on the Street” came after the 10-year Treasury yield jumped to 1.75%, a level not seen since January 2020, continuing a bond settlement that has rocked stock investors this year . Yields move inversely to prices. The bond action is being driven by concerns that more Covid stimulus on an already recovering economy will generate worrying inflation. The 10-year yield started the year with less than 1%.
“It’s happening really fast and I think this is the bond market saying, ‘You don’t know what you’re doing, Jay Powell,'” said Cramer. “Well, let me tell you something, Mr. Bond Market, you’re going to be completely wrong.”