CNBC's Jim Cramer on Tuesday pushed back against claims that the Federal Reserve's highly accommodative monetary policy is the biggest reason why Wall Street continues to rally from last year's pandemic-driven sell-off.
"Every time stocks go up, you get a legion of commentators ... who eagerly explain that the entire move is just an asset bubble engineered by the Federal Reserve's easy-money policies, and it will be rolled back the moment the Fed decides to tighten," the "Mad Money" host said. "That's pure idiocy."
Cramer's comments came shortly after the Dow Jones Industrial Average and S&P 500 set fresh record closing highs Tuesday afternoon. The tech-heavy Nasdaq Composite, which sank about 0.5% Tuesday, recorded its most recent 52-week high last week.
"The averages were all over the place today ...but let me make one thing crystal clear: Business is good in this country thanks to a host of ridiculously positive forces, and it's not just the Fed," Cramer said. He suggested fiscal policymakers in Congress are possibly playing a larger role in the equation right now than the central bank, which is buying $120 billion a month in assets and has kept interest rates near zero since March 2020.
"You've got retailers making fortunes from the child tax credit payments, the banks benefitting from the possibility of making more money with your deposits, and the [industrials] winning big from the infrastructure bill that just passed the Senate," Cramer said. "These forces are gigantic, people. They dwarf all of this talk and nonsense about the Fed tapering or short-term interest rates."
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August 11, 2021 at 05:40AM
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Jim Cramer says it's 'pure idiocy' to attribute the stock rally to only easy Fed policy - CNBC
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