CNBC’s Jim Cramer expects the inflation outlook of Federal Reserve Chairman Jerome Powell to be more accurate than those of bond traders who are betting on a sustained rise and pushing up government bond yields.
Cramer’s comments on “Squawk on the Street” came after yields on the 10-year Treasury rose to 1.75%, a level not seen since January 2020, continuing a bond sell-off that equity investors have seen this year in. confused. Revenues move inversely with prices. The bond action is prompted by concerns that more Covid stimulus on top of an already recovering economy will cause worrying inflation. The 10-year yield started the year at less than 1%.
“It’s moving very fast, and I think this is the bond market that says, ‘You don’t know what you’re doing, Jay Powell,’” said Cramer. “Well, let me tell you something, Mr. Bond Market, you’ll be completely wrong.”