According to Jim Cramer, host of CNBC's "Mad Money," there are four reasons why the Federal Reserve can’t stop tightening the economy just yet. He cites not enough people reentering the workforce, a mismatch between job openings and job seekers, too many people working in customer relations management, data analysis and advertising, and the creation of too many new companies in the past two years. “This market’s hostage to the Federal Reserve, and the Fed’s not going to stop tightening until they see more evidence of real economic pain. Unfortunately, we’re not there yet,” he said.

In today's episode of The Higher Standard, Chris and Saied explore why Cramer is, in fact, wrong in this assertion (and a good deal more).

They discuss a report from real estate brokerage Redfin saying that a record number of homes are being delisted as sellers face a sharp drop in demand. On average, 2% of homes for sale were delisted without being sold each week during the three months ended Nov. 20 compared to 1.6% a year earlier.

Chris and Saied offer some insights into the belief by traders that the Federal Reserve will drive its policy rate above 5% by May, following a report showing little sign of a cooling job market. This is in spite of the central bank's aggressive interest-rate increases so far.

They also discuss recent comments from Bank of America, which is expecting nonfarm payroll gains to be cut in half in Q4 of 2022 and turn negative in 2023. During the first quarter of 2023, the bank projects that the U.S. will be losing roughly 175,000 jobs a month.

Join Chris and Saied for this fascinating conversation.

Enjoy!

What You’ll Learn in this Show:

• Why Jim Cramer is wrong 100% of the time.
• A Labor Department report stating that nonfarm payrolls increased 263,000 for the month while the unemployment rate was 3.7%.
• Why BofA believes that the US economy will start to lose 175,000 jobs per month during Q1 of 2023.
• The storm surrounding the so-called "Liver King" and his recent (and very carefully crafted) apology video.
• And so much more...

Resources:

"Strong Job Numbers Throw Cold Water on Hopes for an End to Interest-Rate Rises" (article from Barron's)

"Traders now see Fed policy rate hitting 5% next year" (article from Reuters)

"The Fed can’t stop raising interest rates due to these 4 factors, Jim Cramer says" (article from CNBC)

"Home Sellers Are Pulling Properties off the Market at Record Pace" (article from Bloomberg)

"Payrolls and wages blow past expectations, flying in the face of Fed rate hikes" (article from CNBC)

"BofA warns that the US economy will start to lose 175,000 jobs per month during Q1 of 2023, expects a ‘harder landing’ rather than a softer one — here’s why" (article from Yahoo! Finance)

"The Liver King Lie" (via YouTube)

"Liver King Confession... I lied." (via YouTube)