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.