Cramer no longer expects Fed to raise rates any further

S&P 500 is trading down even though the monthly jobs data today suggested the labour market was starting to ease.

Jim Cramer explains what it means for the Fed

Available positions, as per the Job Openings and Labour Turnover Survey, declined a whopping 632,000 to 9.93 million in February. That was the first time vacancies came in under 10 million since May of 2021.

In comparison, economists had forecast the JOLTS report to come in at 10.4 million. Put together with the ongoing credit crisis, Jim Cramer no long expects the Federal Reserve to raise rates any further. On CNBC’s “Squawk Box”, he said:

I’ve been with a bunch of banks in the last couple of days, the really big guys at banks. I do think credit’s tightening everywhere. And when credit’s tightening everywhere, it’s hard to justify another hike.

JPMorgan’s Dimon has a different view altogether

Cramer’s view is in contrast with Jamie Dimon – the Chief Executive of JPMorgan Chase & Co. In his annual letter to shareholders today, Dimon said the bank was prepared for higher rates as inflation could persist for longer.

On recent bank failures, he agreed that now was not like the global financial crisis but the pain was not over either.

The current crisis is not yet over, and even when it’s behind us, there’ll be repercussions from it for years to come.

Dimon sees a need for more forward-looking regulatory framework to relieve the financial sector of recent stress. The equities market is down nearly 2.0% versus its year-to-date high at writing.