CNBC’s Jim Cramer said Wednesday that two of Congress’ behemoth spending bills are worrying about the trajectory of inflation.
“I’m still a bull – I felt strongly since June when I saw that commodities were going in the right direction. And I would be very confident about wage inflation as well, if not for Congress,” the “Crazy money” said the host.
“If the rebranding stimulus bill doesn’t pass, we have nothing to worry about, but if it does, we can’t expect it to take years and years for the government to put that money at work,” he said. , referring to the Inflation Reduction Act, 2022.
The Bill it represents a move away from the Democrats reforming the tax code, tackling climate change and reducing health care costs. The bill, which is a revival of President Joe Biden’s Build Back Better bill, will invest over $400 billion and reduce the deficit by $300 billion over a decade.
Cramer said he is also concerned about how the CHIPS and the Science Act of 2022 could raise inflation, saying its higher-than-expected price tag raises concerns about the Fed’s next moves.
Congress passed the bill, aimed at boosting domestic production and chip research, in late July. While the star of the show is the $52 billion in subsidies to US companies that produce computer chips, the whole package costs $280 million.
Complicating Cramer’s concerns about inflation are hawkish comments on inflation from Fed leaders on Wednesday, suggesting that the central bank must continue to take aggressive action to slow the economy.
“I don’t want other people to lose their jobs or their homes. … I have no idea how [Fed Chair] Jay Powell can stop trillions of dollars from being spent right when we have the lowest unemployment rate in years,” Cramer said.