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Morning Bell With Jim Cramer: Why Are We Doubting Jay Powell?

Jim Cramer talks stock market news, including inflation concern and the Federal Reserve.

Stock futures were mostly lower Wednesday as investors awaited the conclusion of the two-day Federal Reserve meeting. Founder Jim Cramer shared his thoughts with Katherine Ross about inflation concern and reiterated his support for Fed Chairman Jerome Powell.

"Why are we doubting Jay Powell?" Cramer asked. "He has done such a good job. He’s learned, he has thrown away the playbook, he has done a fantastic job, and I’m with him."

Federal Reserve: 'Remember What Jay Powell said.'

Cramer said he did not share the inflation concern expressed by investor John Tudor Jones and JPMorgan Chase  (JPM) - Get Report Chief Executive Jamie Dimon.

"I’ve done more work on this than they have," he said. "That may sound arrogant, but it just has to do with my work ethic."

Dimon said on Monday that banking giant had been “effectively stockpiling” cash rather than using it to buy Treasury securities or other investments because of the possibility that higher inflation will force the Federal Reserve to boost interest rates.

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Tudor Jones, who heads the Tudor Investment hedge fund, told CNBC on Monday that this week's Federal Reserve meeting is the most important of Powell's career.

Cramer urged investors to "remember what Jay Powell said."

"He said inflation is going to run hot for a while," Cramer said, "but he’s thrown away the playbook. He is trying to help the working person. A lot of the very rich people that I hear tell me this is going to hurt the working person."

Cramer said there's been no inflation for nine years, "yet every year I hear from these people that there’s going to be inflation. And I’m sorry to be so adamant about this, but the fact is the people who have said we’re going to have inflation over and over again have been proven wrong, and I think Jay Powell doesn’t want to fall in that trap."

"He has already said there will be inflation and it's transitory, and so far, I think it is transitory," Cramer said. 

Cramer said he has seen many instances where there is resistance to price hikes, and "when there’s resistance to price hikes, that’s the beginning of the end of the inflation grip."

"I know that Jay isn’t there to try and help the stock market," Cramer said, "but I think Jay is there very much to help the working person, of which there are 300 million. There are certainly more than there are billionaires, who come on and tell us what the working person needs."