CNBC’s Jim Cramer is raising concerns about what he sees as a looming wave of price hikes—and he says the American consumer shouldn’t be the one to pay the price.
Companies, Not Powell, Hold the Key
“From what I can tell we are about to have a burst of price hikes that must be eaten by someone and I hope it is not the American consumer,” Cramer posted on X.
He said Federal Reserve Chair Jerome Powell is holding off on rate decisions for now, which Cramer views as a smart move: “Mr. Powell is waiting because he wants to see if there are a great deal of price hikes. Seems shrewd.”
Cramer believes companies that choose to raise prices will ultimately drive what happens next. “They, not Powell, will hold the key. The President should be the advocate against INFLATION as that is the enemy. That elected him among other things,” he wrote.
Trump Weighs In
President Donald Trump criticized Powell on his Truth Social account, blasting the Fed chair as “Too Late and Wrong.”
“The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!'” Trump wrote.
He added that the U.S. is benefiting from tariffs, and with oil and grocery prices down, Powell should have cut interest rates long ago.
“Powell’s termination cannot come fast enough!” he said.
While Trump focused on Powell, Cramer argued the White House needs to step in.
In Cramer’s view, inflation isn’t just an economic issue—it’s a political one that the administration must confront head-on.
March Inflation Eases but Tariff Concerns Loom
New data from the Bureau of Labor Statistics shows that inflation cooled in March. The consumer price index rose 2.4% for the 12 months ending in March, down from 2.8% in February.
Core CPI, which excludes food and energy, also dipped to 2.8%, the lowest since March 2021.
Lower gasoline prices were a big factor in the slowdown. Prices at the pump dropped 6.3% month-over-month and are down roughly 10% over the past year.
But not everything is cooling. Food prices remain a major concern, with grocery prices rising 0.5% from February to March.
Eggs alone spiked 6% in one month, partly due to a bird flu outbreak. Prices for instant coffee jumped 13%, driven by weather disruptions in key growing regions like Brazil.
Mark Zandi, chief economist at Moody’s, warned that the positive CPI news may be short-lived.
“It would have been a really good day,” he said. “But because of the tariffs, the trade war, it means nothing.”
President Trump’s tariff agenda includes a 10% universal tariff on all imports and a 145% tariff on goods from China.
In retaliation, China has hit U.S. exports with tariffs as high as 84%.
According to economists at Capital Economics and Vanguard Group, the tariff policy could push the inflation rate back up to around 4% by the end of 2025, double the Federal Reserve’s 2% target.
Tariffs function like a tax on U.S. importers, who pass those costs to consumers. That means prices for everything from smartphones to antibiotics may continue to climb.
Housing inflation has shown signs of cooling, which could help bring overall inflation down.
Shelter inflation slowed to 4% annually in March, the lowest since November 2021. Preston Caldwell of Morningstar called this housing disinflation “set in stone.”
Still, many economists caution that the outlook remains uncertain.
Greg McBride, chief financial analyst at Bankrate, wrote: “This inflation report had some highlights, and continues to have problem areas in food prices and energy components like electricity and natural gas. But all this is looking in the rear-view mirror.”
Cramer’s message? Inflation is still the biggest threat facing American wallets—and it’s up to the president to do something about it.
IMAGE CREDIT: “Donald Trump” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.