March jobs report gives the Fed room to keep interest rates low, Jim Cramer says

Investors should not fear about the Federal Reserve elevating interest rates after the launch of the newest U.S. jobs report, CNBC’s Jim Cramer stated.

Businesses employed 916,000 employees final month, in accordance to knowledge from the Labor Department launched Friday. However, the report additionally confirmed common hourly earnings declined by Four cents in March.

Wages can be a key part for the Fed to gauge inflation, the “Mad Money” host stated.

“Professional money managers crave growth without wage inflation, and that’s just what we got … nirvana for stocks,” Cramer stated. “This kind of labor report gives Fed Chairman Jay Powell the green light to keep holding rates low.”

“I like [Powell’s] hand more than that of the inflationistas right now because nothing is more important to stocks and bonds than that nonfarm Labor Department report that we got just Friday,” Cramer stated.

Cramer additionally pointed to a decline in oil costs as a purpose for the Fed to keep rates at traditionally low ranges. West Texas Intermediate futures dropped greater than 4% on Monday.

These parts will let Powell stick to his plan of maintaining rates low till the financial system recovers from final 12 months’s pandemic downturn, in accordance to Cramer.

The feedback got here after shares rallied to open the first full week of the second quarter. The S&P 500 and Dow Jones Industrial Average every jumped greater than 1% to recent file highs. The tech-heavy Nasdaq Composite outperformed the Dow and S&P 500, surging 1.7%, and it is now about 3% off its February file.

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