Jim Cramer Says Fed Closer To Victory In Inflation Battle: Powell's Likely 'Made More Progress...Than Colleagues Want To Believe'

Prominent market commentator Jim Cramer said the Federal Reserve is closer to victory in tackling inflation than what Wall Street might believe.

"Price stability … is right around the corner," he said according to a CNBC report. The Fed "just needs to be aware there's really only one area of strength left in this entire economy," he added.

"Maybe [Fed Chair] Jay Powell's made more progress fighting inflation than [his] colleagues want to believe, except for this one area," he said.

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Major Wall Street indices closed in the red on Thursday as concerns over the Federal Reserve's future policy moves took precedence as Treasury yields rose following a poor auction of long term bonds.

The SPDR S&P 500 ETF Trust SPY closed 0.87% lower while the Invesco QQQ Trust Series 1 QQQ fell 0.88%.

Spending Power: Cramer also highlighted the fact there's confusion about whether the central bank has brought down inflation enough because of a bifurcation in the economy between the services side, that is witnessing a boom, and the goods side, which is seeing a bust.

He pointed out that it's largely the wealthy people whose spending power has remained unaffected, allowing them to continue to spend on both travel and retail.

"The Bed Bath & Beyond Inc'sBBBY of the world most likely won't come back. But the high ends like Tiffany, purchased by LVMH, they are crushing it," he said. "But that doesn't represent the real economy," Cramer added.

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