March employment report covers Fed policy on monetary policy

Investors shouldn’t worry that the Federal Reserve will raise interest rates after the release of the latest US employment report, CNBC’s Jim Cramer said.

The companies hired 916,000 workers last month, according to Labor Department data released Friday. However, the report also showed that average hourly earnings decreased 4 cents in March.

Wages will be a key component for the Fed to measure inflation, said the “Mad Money” host.

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

“I like [Powell’s] Deliver more than the inflationists right now because nothing is more important to stocks and bonds than that report from the Nonfarm Labor Department that we got on Friday, “Cramer said.

Cramer also pointed to a drop in oil prices as a reason for the Fed to keep rates at historically low levels. 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 the stock rose to open the first full week of the second quarter. The S&P 500 and the Dow Jones Industrial Average each jumped more than 1% to new all-time highs. The high-tech Nasdaq Composite outperformed the Dow and S&P 500, up 1.7%, and is now 3% below its February record.


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