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Why Jim Cramer Agrees with Fed Chair Jerome Powell
"Jay Powell not only has a heart, he's got a brain too! That was Jim Cramer's takeaway from the Federal Reserve's comments earlier on Wednesday. Cramer told his Mad Money viewers that the only thing that surprised him was that so many people were surprised," wrote TheStreet's Scott Rutt in his Mad Money recap. "The Fed acknowledged the obvious, Cramer continued. Yes, there's inflation. Yes, inflation is bad and eventually the Fed will have to act to combat it. But for the moment, it's more important to put people to work than to fret over gradually rising prices."
"Cramer said Powell knows what he's doing and six more months of the stars quo makes perfect sense. It gives the economy time to grow and bring back more of the jobs it lost, while at the same time, giving supply chains a chance to recalibrate," he continued. "In this environment, investors need to use any weakness to buy companies with better-than-expected earnings that can flourish in a low-interest-rate environment. That means the industrials and the tech stocks make great investments, at least for the time being."
How's Ford Looking?
Ford had some positive comments about its next earnings report, which will be released on July 28.
In a statement ahead of a Deutsche Bank Global Auto Industry Conference later Thursday, Ford said second-quarter earnings will "surpass expectations and be significantly better than a year ago", thanks in part to lower-than-expected costs and "favorable market factors". Net income, Ford said, will be "substantially lower than a year ago", however, owing to a $3.5 billion gain that was linked to its investment in Argo AI.
"We're providing customers with great value today and there's much more on the way, because we're executing Ford+ from strength - with iconic nameplates and leading positions with retail and commercial customers around the world, and the best financing company in our industry in Ford Credit," CEO Jim Farley said in a statement.
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