Jim Cramer Says Fed Unable To Get Clear Vision Of Economy: 'Insanely Hard To Predict Consumer Behavior'

Prominent market commentator Jim Cramer reportedly said on Monday the Federal Reserve is unable to get a clear vision of the economy in current times as macroeconomic factors and unpredictable human behavior are distorting the markets.

"Nothing in this economy is working like it's supposed to, nothing is predictable. History's a terrible guide right now because we've never been in this situation before," Cramer said, according to a CNBC report.

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Distorted Markets: The market commentator pointed out that the Ukraine war has led to a massive warping in food and oil prices with these markets getting artificially controlled by geopolitics rather than supply-demand dynamics.

Cramer also said the economy has been twisted by Covid-era government assistance like unemployment subsidies and student loan forgiveness, which has increased inflation.

Recession fears have led investors to buy 10-year Treasury bonds "at absurdly low levels," said Cramer.

More people are embracing the ethos of "you only live once." "It's insanely hard to predict consumer behavior, which is why the Fed's moves to date seem to have little impact," Cramer said.

Markets have witnessed significant volatility this year. After January's rally, most of the gains were pared in February dragged by strong economic data and a tight labor market.

After last week's downbeat performance, markets witnessed a breather on Monday. The SPDR S&P 500 ETF Trust SPY closed 0.34% higher while the Invesco QQQ Trust Series 1 QQQ gained 0.72%.

Meanwhile, Federal Reserve Governor Philip Jefferson said on Monday he was under no illusion that it’s going to be easy to bring the inflation rate back down to 2%.

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