CNBC’s Jim Cramer on Thursday praised the Federal Reserve and its chairman, Jerome Powell, for updating their approach to monetary policy to help the U.S. economy recover from the coronavirus pandemic.
“Powell is on the side of the bulls,” Cramer said on “Squawk on the Street.”
The Fed earlier Thursday said it would be willing to let inflation run hotter than usual in order to help the labor market and broader U.S. economy as it digs out of a deep hole caused by the Covid-19 crisis.
“[Powell] basically just said, ‘Hey guys, just go. Go get the economy back. I am not going to get in the way of it,'” Cramer said, calling the approach “incredible” for investors because it allows corporate America to worry less about Fed intervention.
“He’s not listening to people who say, ‘You better start worrying about inflation now.’ He’s looking about employment and realizing, you know what, we’ve got to be sure that we don’t go back into a depression after we’ve had some nice comeback,” Cramer said.