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What the Consumer Tells Jim Cramer About the Economy, Federal Reserve

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What does the consumer tell us about the economy?

"Here's what it is not: the most dangerous time for investing ever. The fate of the western world's capitalist forces are not at stake because of the current bout of inflation. The U.S. government's debt isn't going to cause the stock market to tumble. A soft landing from this sonic booming economy is more likely than not once supply chains are resolved and unemployment benefits recede. The Fed hasn't tied its hands by making any projections. Only the journalists think that Jay Powell must be held to his amorphous words," Cramer wrote in his Real Money column. "Yet the worries keep piling on. This kind of inflation is part of the reason: it's at the pump, the supermarket, the restaurant, the car dealer and the house hunt. It does feel 360."

"First, Bank of America (BAC) CEO Brian Moynihan's comments on Mad Money about the state of the consumer seem to go unheralded. They shouldn't be. The American consumer is both saving at a record rate and spending at a record rate. It seems that the former is more robust than the latter, so even with prices escalating the consumer as told to us by the one that touches one out of every two households in America, is more sound than anytime anyone can recall. An extended, indebted, defaulting consumer is a dangerous one. This one isn't. The savings rate also tells you that the Baby Boomers, who were supposed to be pulling money out of the market, haven't done so to any real stretch. Again, very good for the market," he continued.

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