Mixed inflation data may be required for a soft landing

CNBC’s Jim Cramer told investors on Monday that although the market remains volatile as it receives contrasting signals about the inflation situation, the tipping point may give way to a soft landing.

“The news is precarious. It can go both ways. But that may be what we need to see if we are going to have a soft landing, not a terrible crash landing,” he said.

“If all the data were strong, we would be set up for a series of aggressive rate hikes that would ruin the economy. If all the data were weak, then it is already too late,”[ads1]; he added.

The “Mad Money” host pointed to several bad and good news the market has received recently, including that pending home sales were up 0.7% in May compared to April and that durable goods increased in May.

At the same time, the large indices saw a fall on Monday and more commodity prices are on the way down, even though the energy sector saw a rise, he added.

“The ideal result here is to get enough of a downturn that the Fed can raise interest rates gradually without throwing a ton of people out of work,” Cramer said. But Wall Street can prepare for layoffs following a hiring boom during the height of the pandemic.