Jim Cramer weighs in on Fed interest rate cut plans: ‘Don’t hold your breath.’ This economy doesn’t need them.”

Jim Cramer analyzed the recent nonfarm payrolls report and highlighted the strength of the economy, advising investors not to anticipate rapid rate cuts from the Federal Reserve.

What happened: According to Cramer, the monthly nonfarm payrolls report contains the most critical government data, CNBC reported Tuesday. Nonfarm payrolls, which represent the number of jobs in the public and private sectors, rose by 303,000 in March, beating the Dow Jones estimate of 200,000. The unemployment rate stood at 3.8%, as expected.

Cramer called the current state of the country an “economic miracle,” encouraging investors to consider the potential landscape if the Federal Reserve focused on creating jobs rather than maintaining high rates to curb growth.

“If you’re hoping for a rate cut from the Fed … I say maybe don’t hold your breath. This economy doesn’t need it,” he said.

“Be happy we won’t have any more rate increases.”

See also: Peter Schiff sees Jamie Dimon’s inflation warning as ‘sugar coating’ and predicts a more severe crisis

The CNBC host also discussed the report’s implications for consumers, saying that employment influences consumer spending. The report indicated employment growth in the leisure and hospitality sector, returning to pre-pandemic levels in February 2020. This suggests that investors may worry less about a cash-strapped consumer, as data further indicates a robust economy.

“We have a solid economy, so I’m a lot less worried about next earnings season,” Cramer said.

“When I check the data, historically, this kind of job creation without a ton of inflation is about as good as you can imagine, regardless of where short-term interest rates are.”

Because matter: Despite Cramer’s analysis, traders were eagerly awaiting March inflation data.

Before, Mohamed El-Erian, Chief Economic Advisor at Allianz, criticized the Federal Reserve for being overly reliant on data, suggesting it was losing sight of its broader strategy.

Interestingly, on the same day, a bond trader placed a record-breaking bet on December 2024 short-term interest rate futures, indicating confidence in impending rate cuts. This move appears to contradict Cramer’s opinion, highlighting the uncertainty surrounding the Federal Reserve’s next moves.

Read next: ‘Rich Dad, Poor Dad’ Robert Kiyosaki Calls ‘Bidenomics’ a Hoax, Says ‘Inflation Is Eating American Families Alive’

Photo via Shutterstock