Jim Cramer warns interest rates are unlikely to drop, citing "unholy developments" including the U.S. war with Iran
CNBC's Mad Money host Jim Cramer believes interest rates will not fall soon, attributing this to the U.S. war with Iran and the stance of newly installed Federal Reserve Chairman Kevin Warsh. Cramer noted that Warsh, speaking at Jackson Hole on August 28, reiterated that inflation is broad-based and too high, and that price stability is the Fed's job. As of September 3, the market is pricing in a 50% chance of a rate hike at the next FOMC meeting on September 15-16, according to CME Group's FedWatch gauge. Fed Governor Christopher Waller recently suggested he was inclined to hold rates steady, but is not advocating for a rate cut, as year-over-year inflation remains stubbornly above 2%.
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