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Stock Market Today With Jim Cramer: FOMC, Inflation Fears

Jim Cramer isn't as worried about inflation as JPMorgan Chase CEO Jamie Dimon is.
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Stocks declined Tuesday as the Federal Reserve began its two-day meeting, U.S. retail sales fell more than expected in May and producer prices climbed for the fifth month in a row.

Investors had stocks in the red all day Tuesday, though the S&P 500 and Dow Jones Industrial average rebounded off session lows during the afternoon. 

Market Move Due to Anxiety About Fed: Cramer

Steel and copper stocks were lower Tuesday amid the wider market decline, leading TheStreet.com Founder Jim Cramer to estimate that the move is a reaction to anxiety about the Fed's Federal Open Market Committee meeting. 

Concern that "the Fed is actually going to change its tune and go against the economy" is prompting formerly winning sectors like metals to fall ahead of Tuesday's meeting, Cramer said. 

Bank stocks were also falling Tuesday after J.P. Morgan CEO Jamie Dimon said that his bank is "effectively stockpiling" cash because it expects inflation to be a problem for the economy. 

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“We have a lot of cash and capability and we’re going to be very patient because I think you have a very good chance inflation will be more than transitory,” Dimon said.

Cramer Has Faith That Fed Can Control Inflation

Jim Cramer isn't as worried about inflation as Dimon is, however, saying that his confidence comes from his homework on the subject and Fed Chair Jay Powell's track record of keeping inflation in check during his term. 

"We’ve had no inflation for nine years and yet every year I hear from these people that there’s going to be inflation," Cramer said. "People who have said that we’re going to have inflation over and over again have been proven wrong. Jay Powell says that there is going to be inflation but it’s going to be transitory."