Jim Cramer Says Inflation Needs To Cool In These Areas Before Expecting Relief From Rate Hikes

Prominent market commentator Jim Cramer cautioned investors that interest rates haven't peaked yet and may not begin to fall until inflation cools in three areas.

Cramer said there won't be relief from higher interest rates until the price rise phenomenon falls in food, housing, and wages where the necessary slowdown isn't being seen yet.

"So far, we only have it from the retailers," Cramer said according to a CNBC report.

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The market commentator said that right now, "we're still negative three for three." "I'll change my tune if we get more data showing that February was weak," he added.

Price Action: Major Wall Street indices closed mixed on Wednesday after the Institute for Supply Management's (ISM) manufacturing PMI rose to 47.7 last month from 47.4 in January, indicating inflation may continue to remain sticky. The SPDR S&P 500 ETF Trust SPY closed 0.38% lower while the Invesco QQQ Trust Series 1 QQQ lost 0.8%.

Hawkish comments from Federal Reserve officials, too, added to the pain. Atlanta Fed President Raphael Bostic wrote in an essay that interest rates would need to rise to between 5% and 5.25% and then stay there until well into 2024.

Cramer stated that those who believe rates are peaking out right now seem too bullish to him. He said there needs to be more soft economic data before the markets can rally or the "bond bulls — or at least what's left of them — need to get wiped out."

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